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- By Parinda News Bureau, January 20, 2007, 17:00 IST
Power Finance Corporation (PFC), a leading power sector public financial institution, proposes to enter the capital markets in February, 2007 through an initial public offering of its equity shares to the public.
The issue opens for subscription on Jan 31, 2007 and will close on Feb 6, 2007. The price band for the issue has been fixed between Rs. 73 and Rs. 85. The price of the equity shares would be determined by a 100% book building process. The IPO shall constitute 10.22% 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, through a 100% book building process. The issue comprises a reservation of up to 2,500,000 equity shares for subscription by the employees of the company and a net issue to the public of 114,816,700 equity shares. Atleast 57,408,350 equity shares, out of which 5% of the qualified institutional buyer (QIB) portion or 2,870,418 equity shares (assuming the QIB portion at 50% of the net issue) shall be available for allocation to mutual funds, and 54,537,932 equity shares (assuming the QIB portion to be 50% of the net issue) shall be available for allocation to all QIBs including mutual funds. The non-institutional portion comprises of 17,222,505 equity shares.
The retail portion consists of 40,185,845 equity shares. All allocation of equity shares would be made on a proportionate basis.
The equity shares are proposed to be listed on NSE and BSE.
The objective of the issue is to augment the company`s capital base to meet the future capital requirements arising out of growth in the company`s assets.
Power Finance Corporation is a leading power sector public financial institution and a non-banking financial company providing fund and non-fund based support for the development of the Indian power sector. Its clients include state power utilities, central power sector utilities, power departments, private power utilities (including independent power producers), joint sector power utilities, power equipment manufacturers and power utilities run by local municipalities.
Enam Financial Consultants, ICICI Securities and Kotak Mahindra Capital Company are the book running lead managers for the issue and Karvy Computershares is the registrar to the issue.
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