PFC fixes price band at Rs 73-85 per share

New Delhi, Jan 12 (UNI) Power Finance Corporation (PFC), country's prime lender financial institution for power companies, has fixed the price band for its much-touted initial public offering at Rs 73-85 per share.

''The issue of 11,73,16,700 shares is expected to mop over Rs 1,200 crore at this price band,'' according to highly placed company sources.

Of the nearly 11.74 crore equity shares to be issued, 50 per cent have been allocated to the qualified institutional buyers (QIBs), 15 per cent to high net worth individuals (HNIs) and the rest 35 per cent to retail investors.

Around two per cent (25 lakh shares) have been cornered for the employees of PFC, the sources added.

The company today filed documents for the issue, which will open from January 31 till February 6, with the Registrar of Companies (ROC).

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 company's paid-up capital is Rs 1,030 crore, which would rise to Rs 1,147.4 crore after the issue, which will offload 10.22 per cent equity of the government. The government holding would be reduced to about 89.78 per cent from 100 per cent at present.

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.

NHPC and PGCIL have been allowed to dilute 24 per cent of equity each as against 20 per cent permitted to REC.

Of the five public sector undertakings, PFC is the first to come out with an IPO.

UNI