Power Finance Corporation stake sale subscribed over 2 times: FinMin
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28 Jul 2015
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The 5 per cent stake sale in state-owned power sector lender Power Finance Corporation (PFC) got fully subscribed with overwhelming demand by retail investor, which is likely to fetch exchequer at least Rs 1,710 cr based on average bid price. The strong demand for the stock indicates that there is tremendous appetite amongst retail investors for the disinvestment programme of the Government of India. “The second CPSE disinvestment for the fiscal year 2015-16 was successfully completed today with the PFC offer for sale getting fully subscribed, oversubscribed by 233 per cent,” Ministry of Finance said in a statement. The 5 per cent paid up capital of the company comprising 6,60,02,035 shares, each of face value of Rs. 10, was put on board. Out of the shares offered for sale, 20 per cent were reserved for retail investors i.e. those investors who placed bids for shares of total value of not more than Rs. 2 lakh. In addition a 20 per cent discount was also offered to retail investors. With this disinvestment, the GOI shares in PFC will come down to 67.80 per cent. At the end of the day with total subscription of Rs. 3747 crores the issue stood oversubscribed by 233 per cent. The highlight of the issue has been the retail investor participation with 449 per cent oversubscription amounting to Rs. 1510 crores. This was the first CPSE disinvestment under the new SEBI Rules allowing the Notice Period to include banking day in addition to a trading day. The OFS has also been positively endorsed by the institutional investors. At Rs. 2414 crores it was oversubscribed by 180 per cent. |
| Source: Dion Global Type: IPO Related |
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