PFC's follow-on issue priced at the upper end of Rs203 a share

The follow-on public offer (FPO) of Power Finance Corporation (PFC) has been set at the top end of the issue band of Rs203 per share. PFC had set the price band at Rs193-203 per share for the share offer.

"The empowered group of ministers (EGoM) at its meeting held today approved the issue price for PFC's FPO at the upper cap of the price band, ie, Rs203 per share with a discount of 5 per cent to the retail investors and eligible employees," PFC said in a filing with the Bombay Stock Exchange (BSE).

The follow-on public offer (FPO) of state-run PFC was subscribed 4.34 times. The FPO got bids for 995.4 million shares against 229.5 million shares on offer. The FPO comprised a fresh issue of 172.1 million equity shares and an offer for sale of 57.3 million equity shares by the government.

Of the total, the portion for qualified institutional buyers (QIBs) was subscribed 6.92 times. The portion for non-institutional investors category was subscribed 1.2 times while retail individual investors (RII) category was subscribed 2 times and employee reservation category by 0.91 times.

PFC proposes to utilise the issue proceeds to augment its capital base in order to ensure compliance with capital adequacy norms and for future capital requirements.

The government has set a disinvestment target of Rs40,000 crore in the year ending March 2012