Lining up the disinvestment offers for the 2011-12 fiscal year, Power Finance Corporation ( PFC) is likely to file its draft red herring prospectus (DRHP) next week. The PFC issue is expected to garner R5,800 crore.
?We have planned PFC and SAIL?s stake sale offers for the first quarter of 2011-12?, Sumit Bose, disinvestment secretary, told FE. The department plans to have between eight to nine public offers of PSUs in the next fiscal.
The public offer of PFC includes 15% fresh issue of shares by the company and 5% divestment by the government. Retail investors and PFC employees will be eligible for a discount of 5% on the issue price. Currently, the government holds a 89.78% stake in PFC. The Centre divested 10% stake in the company through an initial public offer in 2007.
After the mandatory three weeks time taken by Sebi for the approval of the draft prospectus, the company is planning to conduct its pre-marketing road shows in last week of April. Apart from the public offer, company is planning to raise R30,000 crore for the next fiscal to expand its loan portfolio.
Despite encouraging market sentiment, government did not meet its disinvestment target of R40,000 crore for 2010-11. The less than targeted collections was more than offset from one-time revenue bonanza that came in the form of 3G auctions which helped the government reduce the fiscal deficit below the trageted levels.
However, for the coming fiscal, disinvestment department is keen on pushing big-ticket offers like ONGC, SAIL and PFC as disinvestment proceeds will form a key source of revenue for the government that aims to further bring down fiscal deficit to 4.8% level.
Besides, DoD plans market offerings Rashtriya Ispat Nigam Limited, MMTC and National Building Construction Corporation (NBCC) along with a few other medium and smaller issues.