PFC to file FPO papers with Sebi later this week

The government is all set to begin its disinvestment programme for the next fiscal with Power Finance Corporation, which may file its regulatory papers with market regulator Sebi for the 20% follow-on public offer (FPO) later this week.

"PFC could be the first issue for the next fiscal. It would file its DRHP later this week," an official with the Finance Ministry told PTI.

The public issue is to likely to hit the market sometime in May.

The company has already shortlisted the merchant bankers for the FPO. Goldman Sachs, JM Financial, DSP Merill Lynch and ICICI Securities are likely to manage the around Rs 6,000 crore FPO of the state-run lending agency.

Last month, the Cabinet Committee on Economic Affairs gave nod to the company to hit the market. The company will infuse 15% fresh equity, while the government will dilute its 5% stake.

The government currently holds a 89.78% stake in the firm. It had divested a 10% stake through an initial public offer (IPO) in 2007.

Besides PFC, the government also plans to disinvest in SAIL in the first quarter of next fiscal.

Yesterday, SAIL had said it will file the red herring prospectus (RHP) in May for its forthcoming FPO, which is expected to hit the market in the first quarter of the next fiscal.

"It may happen sometime in May," SAIL Chairman C S Verma said when asked about the company's plan to file the RHP.

The much-delayed share sale of the Maharatna firm was earlier proposed to hit the market in February.

The government also plans to come out with the FPO of ONGC, after the issue of independent directors is solved.

ONGC does not meet market regulator Sebi's listing norm of having an equal number of functional and independent directors.