PFC IPO opening on Jan 31

New Delhi, Jan 11 (UNI) Power Finance Corporation (PFC), the country's prime lender to power companies, today said its much-awaited Initial Public Offering (IPO) to raise up to Rs 1,000 crore will open on Janaury 31 till February 6.

The company will file its documents related to the issue with the Registrar of Companies (ROC) tomorrow, according to highly placed company sources.

''However, the price band has not been finalised yet,'' the sources told UNI.

''The Draft Red Herring Prospectus (DRHP), filed in December 2006, has been cleared by the market regulator Securities Exchange Board of India (SEBI) and a final nod is awaited,'' the sources added.

The company is entering the capital market with 11.74 crore equity shares at an estimated price band of Rs 65-70 per share, offloading 10.22 per cent equity.

Its paid-up capital is Rs 1,030 crore, which would rise to Rs 1,147.4 crore after the issue. The government holding would come down to around 89.78 per cent from 100 per cent at present.

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

The lead managers for the issue are Kotak Mahindra, Enam Financials and ICICI Securities.

After the Cabinet's nod in December last year, other state-run power companies including Power Grid Corporation of India (PGCIL), Rural Electrications Corporation (REC) and North Eastern Electric Power Company (NEEPCO) will follow the IPO route.

National Hydro Power Corporation (NHPC) is also expected to enter the capital market in June this year to raise nearly Rs 2,500 crore.

The company and PGCIL have been allowed to dilute 24 per cent of equity as against 20 per cent to REC.

NHPC will utilise the funds for its expansion plans to become a 10,000 mw company by 2012.

UNI