Govt readies to sell off 5% in PFC

 Getting disinvestment in profit-making public sector companies back on track, the government is looking at offloading a five per cent stake in Power Finance Corporation Ltd (PFC) through its forthcoming initial public offer.

Top government sources said the IPO was cleared by the Cabinet yesterday and a formal announcement would be made shortly. The power ministry had proposed a fresh issue of 10 per cent of the existing paid-up capital of the company.

The finance ministry wanted that, like the NTPC selloff last year, the government should also offload a 10 per cent stake in the company at the time of the public offer.

But the Cabinet, according to the sources, has favoured a five per cent divestment. The proceeds from the 5 per cent selloff might not accrue to the government during the current financial year as it would be at least four months before the IPO hit the market, officials said.

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