Power Finance Corporation will sell over 6.6 crore equity shares or 5 per cent of its equity in an offer-for-sale through stock exchanges on July 27. The indicative issue size would be known only after the company declares the floor price on Saturday.
The OFS will take place in a separate window on the NSE and the BSE, with the NSE being the designated exchange.
20% for retail investorsRavi Varanasi, Chief - Business Development, NSE, said: “Like other OFS, NSE will facilitate the process. The price of the OFS will be announced tomorrow.” Retail investors have a minimum reservation of 20 per cent in the OFS and will be given a 5 per cent discount to the cut-off price. The discounted price may be below the floor price.
If the retail category is fully subscribed, bids by retail investors below the cut-off price will be rejected. If the retail category is not fully subscribed then the bids whose price is between the cut-off price and the discounted price will become eligible for allotment provided the bids are equal to or above the floor price.
Allotment to all such bids will be done at the discounted price and excess demand would mean proportionate allotment at the cut-off price.
Axis Capital and SBI Cap Securities are the selling brokers to the issue.