PFC price band for FPO at Rs 193-203 per share

The government is believed to have fixed the price band at Rs 193-203 per share for the follow-on public offer of state-run Power Finance Corporation.

"The price band (for PFC FPO) is Rs 193-203 per share," a source in the know of development said.

The FPO is likely to fetch close to Rs 4,700 crore at the upper end of the band and Rs 4,400 crore at the lower end of the price band.

PFC FPO which opens on May 10 and closes on May 13 comprises fresh issue of 17.21 crore equities besides 5.74 crore which is being offloaded by the government in the company.

The government is disinvesting 5% of its stake in the public sector company, while the company is raising 15% fresh equity.

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 FY11, 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.

BofA Merrill Lynch, Goldman Sachs, ICICI Securities and JM Financial are among the book running lead managers for the offer.

Shares of PFC today closed at Rs 214.55 on the Bombay Stock Exchange, down 0.28% from the previous close.