PFC fixes IPO price band at Rs 65-70 per share

New Delhi, Dec 3 (UNI) State-run Power Finance Corporation (PFC) is all set to enter the capital market with an Initial Public Offering of 11.74 crore equity shares at a price band of Rs 65-70 each on January 12, 2007.

''The price band of the shares has been fixed at Rs 65-70 per share of Rs 10 face value. The bid may open on January 12 next year, subject to receiving necessary approvals from SEBI,'' company sources told UNI.

The company will file draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) on December 17 for the IPO of 10.22 per cent post-issue capital.

Of the issue, 25 lakh shares have been allocated to the employees, the sources said.

The Cabinet had given its nod to the IPOs of Power Grid Corporation of India Limited (PGCIL), Rural Electrification Corporation (REC) and PFC last week after deciding that the proceeds will go to the power firms and not to the government.

While the PGCIL IPO is not to exceed 24 per cent in paid-up capital, the REC's issue of 15.6 crore shares is to be 20 per cent in paid-up capital.

PFC had filed a prospectus with SEBI in June for 10 per cent IPO and 5 per cent disinvestments.

However, following strong resistance by communist parties, the Centre put on hold the company's IPO and disinvestments in government undertakings.

The lead managers for the IPO are Kotak Mahindra, Enam Financials and ICICI Securities, according to the sources.

PFC's paid-up capital is Rs 1,030 crore, which would rise to Rs 1,147.4 crore after the issue, and the government holding in the company would come down to 89.78 per cent from 100 per cent at present.

UNI CS PKS RN1208