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

MUMBAI Sun Mar 20, 2011 10:29pm EDT

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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.