PFC to foray into capital market

Mumbai, Jan 18 (UNI) Power Finance Corporation (PFC) today announced its plans to foray into the capital market by floating an IPO that opens on January 31.

The price band for the proposed issue, that closes on February 6, has been fixed at Rs 73 to Rs 85.

Briefing reporters about the IPO here today, Union Power Secretary R V Shahi claimed that the PFC has been performing well since the last few years although the corporation had been plagued with problems earlier. The PFC had problems in securing its dues from various state electricity boards and other power utilities earlier, but now the scenario has changed with all the dues having been repaid, he said.

Power Finance Corporation CMD Dr V K Garg said the proceeds from the public issue would help generate more revenue for the PFC's kitty as it has planned to lend a sum of Rs 12,000 crore during the current calendar year alone.

The PFC hopes to garner Rs 1,000 crore through the proposed IPO, Dr Garg said but, replying to a query, made it clear that PFC may release the issue several times in the future to achieve that amount.

The price of the equity shares would be determined by a 100 per cent book building process and shall constitute 10.22 per cent of the fully diluted post-issue capital of the company.

Enam Financial Consultants, ICICI Securities and Kotak Mahindra Capital Company are the bank running lead managers for the issue and Karvy Computershare is the registrar. The PFC is offering 117,316,700 equity shares of Rs 10 each to the public which are likely to be listed on the NSE and BSE.

UNI