PFC share sale fully covered on third day today
12 May 2011
State-run Power Finance Corporation Ltd's (PFC) up to $1-billion share sale was fully covered today, the third day of the offer.
The institutional portion of the offer, which closed today, received bids for nearly 2.7 times the shares on offer, according to data. The offer for other investors will close on Friday.
PFC which lends to power projects, has fixed the price band at Rs193 to Rs203 a share for its latest offering.
The offer forms part of the government's plan to raise $8.9 billion through share sales in public sector firms this fiscal year and to cut high fiscal deficit and garner funds for welfare schemes.
Meanwhile, the company plans to float a subsidiary, Power Finance Corporation Green Energy Ltd, to finance the renewable energy projects in the country.
''We have already received a certificate of incorporation from the government for floating this subsidiary and we will begin operation soon,'' R Nagarajan, director (finance), told reporters.