PIB Press Release dated 10 February 2011
The Cabinet Committee on Economic Affairs has approved the Follow On Public Offer (FPO) of Power Finance Corporation (PFC) consisting of:
- 17,21,65,005 equity shares of Rs.10 each constituting fresh issue of 15% of pre-issue existing paid up capital;
- In addition to above, 5,73,88,335 equity shares of Rs.10 each representing disinvestment by Government of India of 5% of pre-issue paid up capital of PFC;
- Reservation of equity shares for PFC employees subject to the limit prescribed for retail investors by SEBI, which will not exceed 0.12% of the issue size.
- Discount of 5% of offer price to the retail individual investors and eligible employees.
Fresh issue of equity shares would enable PFC:
- To meet the eligibility requirement of maintaining a CRAR (Capital to Risk Assets Ratio) of 15% for IFC (Industrial Finance Company) status and
- To enhance equity base to enable it to meet the growing future investment needs of the power sector.
Link is being provided for easy reference to PFC website: