Government Sets Floor Price at Rs 254 for PFC Stake Sale

Government Sets Floor Price at Rs 254 for PFC Stake Sale

New Delhi: Government has set the floor price at Rs 254 per equity share for divestment of 5 per cent of its stake in Power Finance Corporation (PFC) on July 27.

"...the floor price of the offer in terms of the SEBI OFS Circular shall be Rs 254 per equity share of Power Finance Corporation Ltd," Power Finance Corporation said in a BSE filing.

At the floor price, the government is expected to mobilise around Rs 1,676 crore through the divestment.

Shares of PFC closed at Rs 259.55 apiece on the BSE on Friday.

At present, government holds 72.80 per cent equity in Power Finance Corporation. After sale of 6.60 crore shares representing 5 per cent stake on offer, government's holding will be reduced to 67.80 per cent.

PFC's the offer for sale (OFS) will commence at 0915 hrs and close at 1530 hrs on July 27.

The Department of Disinvestment has a Rs 69,500-crore target from PSU disinvestment in the current fiscal, of which Rs 41,000 crore would come from minority stake sale and Rs 28,500 crore from strategic stake sale.

As per the government's disinvestment plan, the DoD would sell minority stake in PSUs through an offer for sale in which 20 per cent of the issue size is reserved for retail investors and 25 per cent for mutual funds and domestic insurance companies.

The remaining portion is left for institutional investors, which are usually lapped up mostly by domestic financial institutions and foreign funds.

The government in this fiscal has been able to sell stake in only one PSU, REC.