The government's first divestment of FY12, the follow-on-public offer (FPO) of Power Finance Corporation (PFC) will kick off on May 10, reports CNBC-TV18.
The empowered group of ministers on the FPO today decided on a price band between Rs 193-203 per share. The government will divest 5% stake on the company which will raise 15% fresh equity via the issue.
The government holds about 89% stake in PFC, after divesting 10% through an initial public offering in March 2007.
For this fiscal, the government has set a target of mopping up Rs 40,000 crore through disinvestment in public sector entities. In 2010-11, amount raised through disinvestments stood at more than Rs 22,700 crore.
Last year, PFC was given infrastructure finance company status- a move that enabled the entity to mop up funds through issue of tax-free infrastructure bonds. In April, the board of directors of PFC had approved the Red Herring Prospectus (RHP) for the proposed FPO.
