Government Seeks Bids From Banks to Manage PFC, REC Share Sale

Mumbai: The government on Monday invited bids from investment banks to manage planned share sales in state-run Power Finance Corp Ltd (PFC) and Rural Electrification Corp Ltd (REC), which could raise a combined $515 million (Rs 3,090 crore at 1 dollar = 60 rupees).

The government, which owns 72.8 per cent in PFC and 65.64 per cent in REC, plans to sell 5 per cent in each, the Finance Ministry's divestment department said in a notice on its website.

The last date for submitting bids is September 22, as per the notice. Up to three investment banks will be appointed to manage each offering.

The stake sales are part of the government's plan to raise about $10.5 billion from asset sales during the current fiscal year to March 2015 to help plug its Budget deficit.

Copyright @ Thomson Reuters 2014