PFC IPO opens on Jan 31, Price band Rs 73 to 85

Kolkata, Jan 24: Power Finance Corporations(PFC) is working as anodal agency for nine Ultra Mega Power Projects(UMP) to reach theCentre's obejective of acheiving 2,00,000 MW of power by the end of2012.

Speaking at a programme to announce the IPO, opening on January31, PFC UMP Project Director Shyam Wadhera here today said, ''Out ofthese nine coal-based power projects, four would be mine-mouth projectslocated near the mines while the other five projects would be incoastal locations. Coal would be imported for the coastal projects.''The other nodal agency for these projects is Rural ElectrificationCorporation.

Elaboration on the IPO, he said the PFC plans to enter the capital markets in February 2007 through an initial public offering.

the issue opens for subscription on January 31, 2007. The priceband for the issue has been fixed at Rs 73 to Rs 85. The price of theequity shares would be determined by a 100 per cent book bulidingprocess.

The issue would constitute 10.22 per cent of the fully dilutedpost issue capital of the company. PFC is offering 117,316,700 equityshares of Rs 10 each to the public.

Speaking about power situation in the country, Mr Wadhera said,''The Union government aims to make power available to all, strengthenpower regulatory framework, professionalise SEBs and increase powertrading. In order to achieve these objectives, additional powerresources will be required.

On March 31, 2006 the total power generation in the country was1,24,000 MW. In spite of that the deficit was recorded at 8.3 percent.''

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