Power Finance Corp files DRHP for FPO

State-run financial institution providing finance only to power sector Power Finance Corporation (PFC) has filed draft red herring prospectus (DRHP) with the SEBI for further public issue of 229,553,340 equity shares of face value of Rs 10 each.

The issue consists of fresh issue of 172,165,005 equity shares and an offer for sale of 57,388,335 equity shares by the President of India acting through the ministry of power. It also comprises a reservation of not more than 275,464 equity shares for subscription by eligible employees. The issue will constitute 17.39% of the post issue paid-up equity capital of the company.

The company will not receive any proceeds from the offer for sale. However, company intends to utilize the proceeds from the fresh issue for augmenting capital base to ensure compliance with requisite capital adequacy norms and to meet future capital requirements arising out of growth in business.

Consolidated operating income for the period of nine months ended on December 31, 2010 reported at Rs 7470.66 crore and profit after tax of Rs 1,947 crore.

DSP Merrill Lynch Limited, Goldman Sachs (India) Securities Pvt Ltd, ICICI Securities Limited and JM Financial Consultants Pvt Ltd are the book running lead managers to the issue.

PFC had raised nearly Rs 1,000 crore through the initial public offering in February 2007.