Power Finance Corp FPO likely in April-May

The government today said that the Rs 7,000-crore follow-on public offer of the state-owned Power Finance Corporation (PFC) is likely to come around April or May this year.

"PFC FPO looks difficult this fiscal, it may come in early next fiscal...April or May," Power Secretary P Uma Shankar told reporters here.

The Power Ministry, the parent ministry of PFC had sent a proposal for a 15 per cent fresh equity and 5 per cent disinvestment of government stake in the company in November last year.

The government currently holds 89.78 per cent stake in the firm. It had divested a 10 per cent stake through an initial public offer in 2007.

At current market conditions the company is likely to raise about Rs 7,000 crore.

PFC is engaged in funding power generation, transmission and distribution projects and plans to use the funds from the FPO to finance both existing loans, as well as future lending activities.

The government, which hopes to raise Rs 40,000 crore through its disinvestment programme this fiscal, has already mopped up close to Rs 20,000 crore through stake sales in PSUs Satluj Jal Vidyut Nigam, Engineers India Ltd, Coal India Ltd and PowerGrid Corporation.

Shares of PFC closed at Rs 265.50, down 3.65 per cent on the Bombay Stock Exchange.