Power Finance Corp.Ltd. (PFC)

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:

1. 17,21,65,005 equity shares of Rs.10 each constituting fresh issue of 15% of pre-issue existing paid up capital;
2. 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;
3. 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.
4. Discount of 5% of offer price to the retail individual investors and eligible employees.

Fresh issue of equity shares would enable PFC:

1. To meet the eligibility requirement of maintaining a CRAR (Capital to Risk Assets Ratio) of 15% for IFC (Industrial Finance Company) status and
2. 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: