PFC FPO subscribed 20% on Day 2

The follow-on public offer of state-run Power Finance Corporation (PFC) got subscribed 20% on the second day of issue on Wednesday.

Out of the total issue size of 22.95 crore, so far bids have been received for 4.5 crore shares, according to data available with the National Stock Exchange till 1700 hrs. The price band for the offer has been fixed at Rs 193-203 a share. The issue which opened for subscription yesterday will close tomorrow for QIB bidders and on May 13 for non-institutional investors and retail investors. DSP Merrill Lynch, Goldman Sachs (India) Securities Private, ICICI Securities Ltd and JM Financial Consultants Private are the book running lead manager to the issue. The offer comprises issue of about 172,165,005 fresh equity and sale of around 57,388,335 shares by the government, which has 89% stake in the company. PFC is also offering a 5% discount for retail investors and eligible employees. The company plans to use the proceeds to mainly boost its capital base. PFC follow-on offer, the first disinvestment case by the government in the current fiscal, is expected to raise up to Rs 4,700 crore.