As state-owned Power Finance Corporation’s (PFC) follow-on-public offer (FPO) hit on market on Tuesday, the share price of the company rose by 1.5% to close at Rs 214.1.
PFC will raise around Rs 4,700 crore through FPO, the first stake sale by the government this fiscal that plans to raise Rs 40,000 crore through disinvestment programme during 2011-12.
The price band at Rs 193-203 per share has been fixed for the PFC issue. PFC, a Navratna financial institution that lends to power projects, is offering a discount of 5% in the issue price to retail bidders and eligible employees.
The offer, which opened on Tuesday, will close on May 13. It comprises a fresh issue of 172,165,005 equity shares and an offer for sale of 57,388,335 equity shares by the government that holds about 89% stake in PFC.