A stake of 5 per cent will be sold by the government in Power Finance Corporation (PFC) via auction on the stock exchanges, with base price as Rs 254 per share, says PFC in a notice to the stock exchanges.
The move is intended to raise around Rs 1,660 crore. Retail investors will get a reservation of 20 per cent out of the 6.6 crore shares offered, with an allotment at a 5 per cent discount, as per the notice.
Post selling a 5 per cent stake in Rural Electrification Corporation (REC), PFC would be the second company for the government to sell stake in. The government stake would abate to 67.8 per cent in the same after the sale, said reports.
Ten public sector companies have been classified into two groups by the government namely Oil India, Container Corporation, NMDC, MMTC and ITDC forming the first group. The second bloc has NTPC, Engineers India, Bharat Electronics, Nalco and Hindustan Copper. The government has told merchant bankers to bid for managing share sales of all the companies in a particular group, as per reports.
The step is aimed at allaying the chances of share price manipulation since it would keep the market guessing on which issue would come first. Additionally, this would also reduce time taken for each share sale, the reports mention.
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