PFC follow-on offer to start on May 10: Sources

Follow-on public offer of state-run lender Power Finance Corporation (PFC) will open for subscription during May 10-13, reports CNBC-TV18 quoting sources.

The company is likely to raise around USD 1.2 billion through the issue by selling 22,95,53,340 equity shares. It will comprise a fresh issue of 17,21,65,005 equity shares by the company and an offer for sale of 5,73,88,335 equity shares by the President of India, acting through the Ministry of Power, Government of India.

The issue would constitute 17.39% of the post issue paid-up equity capital of the company. Company will not receive any proceeds from the offer for sale, which shall go to the Government of India.

Proceeds from fresh issue are proposed to be used for augmenting capital base to ensure compliance with requisite capital adequacy norms and to meet future
capital requirements arising out of growth in business.

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.

The share gained nearly 2%, to close at Rs 228.30. Trading volumes too jumped by 135% to 200,934 shares as against 5-day average of 85,744 shares.

Market capitalisation stands at Rs 26,203.51 crore.