Power Finance Corporation Falls 2% on FPO

Power Finance Corporation shares fell as much as 3.4 per cent to intraday low of Rs 252.20 on Monday. The government is selling 5 per cent stake in Power Finance Corporation to the public as part of its divestment programme. The follow-on public offer in Power Finance Corporation opened today.
  The government has set a floor price of Rs 254 in the Power Finance Corporation follow-on offer, a discount of 2.7 per cent from Friday's closing price of Rs 261 on the Bombay Stock Exchange.
  The government currently holds 72.8 per cent stake in Power Finance Corporation. At the floor price of Rs 254, the government is expected to mobilise around Rs 1,676 crore. Post the FPO, the government's stake in the company will come down to 67.8 per cent.
  The Department of Disinvestment has an Rs 69,500 crore target from PSU disinvestment in the current fiscal.
  Power Finance Corporation's offer for sale opened at 9.15 a.m.


The share sale received good response from institutional investors and portion reserved for them was subscribed 1.75 times by 3.25 p.m..
  The portion reserved for retail investors, who are also getting 5 per cent price discount, was subscribed 4.4 times, as per the stock exchange data.
  Overall, the Offer was subscribed 2.28 times and the subscription may rise further during the day as bidding will continue till 3.30 p.m..   Shares in PFC ended 2.12 per cent lower at Rs 254.05 apiece, compared to 1.88 per cent fall in the broader Nifty. (With PTI inputs)