PFC IPO price band at Rs 73-85 a share

New Delhi, Jan 14 (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 has filed documents for the issue, which will open from January 31 till February 6, with the Registrar of Companies (ROC).

The IPO will ease the company's gearing, while augmenting its capital adequacy position. The proceeds will be used for meeting future requirements of the company, the sources added.

Besides, the proposed reforms and investments in the power sector and the extension of development schemes by the government for the Tenth and Eleventh Five-year plans are expected to offer significant growth opportunities for the company in the medium term.

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