The follow-on public offer of Power Finance Corporation (PFC) got fully subscribed on the third day of its issue. Today is the last day for subscription for institutional investors. However, the issue is open tomorrow for retail investors and employees.
The PFC issue was subscribed 3.58 times — received bids for 82.13 crore shares as against 22.955 crore shares on offer, according to data available with the NSE. Of this, 2.13 crore shares were bid at cut-off price. (Cut-off price is the actual discovered issue price of the issue that can be any price in the price band or any price above the floor price.). The qualified institutional investors' portion is subscribed by 6.55 times while rest of the categories are yet to show any interest in the FPO.
The price band for the offer has been fixed at Rs 193-203 a share.
Fresh issue & divestment
The power company plans to raise about Rs 4,700 crore through the follow-on issue. It offers a discount of five per cent for the retail investors and employees. Retail portion is subscribed by 0.22 times so far, according to the NSE.
The offer comprises of a fresh issue of 17.21 crore equity shares and an offer for sale of 5.73 crore equity shares by the Government that holds about 89.78 per cent stake in the company.
The Power Finance Corporation follow-on offer is the first divestment by the Government in the current financial year. It may recalled that the Union Finance Minister had set a disinvestment target of Rs 40,000 crore for the current financial year.
PFC plans to use the proceeds of the issue to augment its capital base to meet capital adequacy norms.
The PFC stock slipped 0.92 per cent to close at Rs 215.95 on the NSE with 6.73 crore shares changing hands. About 60 per cent of traded shares were up for delivery.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.