India's Power Fin files for $1.2 billion share sale: sources

MUMBAI Sun Mar 20, 2011 10:29pm EDT

Related Topics

MUMBAI (Reuters) - India's Power Finance Corp (PWFC.BO) on Friday filed papers with the market regulator for the launch of a share sale to raise up to $1.2 billion, three sources with direct knowledge of the matter said.

The follow-on share sale by the state-run firm is likely to be launched in the 2011/12 fiscal first quarter ending in June, the sources told Reuters, declining to be named as the information was not public yet.

Power Finance, a lender to power projects, plans to sell 15 percent fresh equity shares while the government of India will divest 5 percent stake in the firm, the company said in a notice to the exchanges on Thursday.

India aims to generate $8.9 billion through share sales in public sector firms in the next fiscal year, with a major chunk likely in the first quarter, divestment secretary Sumit Bose had told Reuters earlier this month.

Other state-run firms that are likely to launch share sale this year include explorer Oil & Natural Gas Corp (ONGC.BO), steelmaker Steel Authority of India Ltd (SAIL.BO) and fuel retailer Indian Oil Corp (IOC.BO). Indian companies raised $24.9 billion from equity issues in 2010, posting a growth of 22 percent from the previous year and marking its best annual performance since 2007. Shares in Power Finance, which has a market value of nearly $6 billion, ended 1.6 percent lower on Friday at 230.25 rupees, in the main Mumbai market .BSESN that dropped 1.5 percent.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.