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

Kolkata, Jan 24 (UNI) Power Finance Corporations(PFC) is working as a nodal agency for nine Ultra Mega Power Projects(UMP) to reach the Centre's obejective of acheiving 2,00,000 MW of power by the end of 2012.

Speaking at a programme to announce the IPO, opening on January 31, PFC UMP Project Director Shyam Wadhera here today said, ''Out of these nine coal-based power projects, four would be mine-mouth projects located near the mines while the other five projects would be in coastal locations. Coal would be imported for the coastal projects.'' The other nodal agency for these projects is Rural Electrification Corporation.

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 price band for the issue has been fixed at Rs 73 to Rs 85. The price of the equity shares would be determined by a 100 per cent book buliding process.

The issue would constitute 10.22 per cent of the fully diluted post issue capital of the company. PFC is offering 117,316,700 equity shares 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, strengthen power regulatory framework, professionalise SEBs and increase power trading. In order to achieve these objectives, additional power resources will be required.

On March 31, 2006 the total power generation in the country was 1,24,000 MW. In spite of that the deficit was recorded at 8.3 per cent.'' UNI