The follow-on public offer (FPO) of state-run Power Finance Corporation (PFC) today got fully subscribed on the third day of its issue. The Navratna financial institution,which plans to raise around Rs 4,700 crore through the FPO,was subscribed 1.62 times,as it received bids for 37.16 crore shares as against 22.96 crore shares on offer,according to data available with the National Stock Exchange. It is the first divestment by the government in the current financial year. Finance Minister Pranab Mukherjee had announced plans to raise Rs 40,000 crore through divestment programme in FY12. The price band for the offer has been fixed at Rs 193-203 per share. The offer would close on May 13. The offer comprises issue of about 172,165,005 fresh equity and sale of around 57,388,335 shares by the government,which has 89 per cent stake in the company. PFC is also offering a 5 per cent discount for retail investors and eligible employees. PFC plans to use the proceeds to mainly boost its capital base. Power sector,a key infrastructure area,is perceived as the main driver of Indias higher economic growth. The 11th Plan (2007-12) targeted 78,700 MW installed power generation capacity addition,while the 12th Plan (2012-17) aims at adding 1,00,000 MW.
