With the Power Ministry seeking Cabinet's nod for Power Finance Corporation's initial public offer, the state-run company has firmed up plans to conduct road hows for attracting investors toward the issue.
The power PSU plans to conduct roadshows in all major cities in the country, including Bangalore, Chennai, Delhi, Kolkata and Mumbai.
It will also hold roadshows in eight cities abroad namely Hong Kong, Singapore, Tokyo, London, New York and Boston, officials said.
The Union Cabinet is likely to approve Power Ministry's proposal in the first week of October, after which the company may file a revised prospectus with market regulator SEBI.
However, the company may not even be required to fulfill this modality if SEBI feels it is not necessary, they added. PFC had earlier in June this year filed a prospectus with the Securities and Exchange Board of India to offer 15.45 crore equity shares, but it could not proceed with the issue after the government put on hold all divestment decisions due to opposition from Left parties and DMK.
The ministry's revised proposal seeks approval to issue up to 24 per cent equity by PFC as against 10 per cent decided earlier.
But PFC would initially hit the market to raise its equity by only 10 per cent, amounting to 10.3 crore shares. Officials said to comply with SEBI norms, the company has also appointed five independent directors on its Board, taking the total number of directors to ten.
PFC is only the second central power PSU to come out with an IPO after generation major NTPC. The ministry is also preparing proposals to get approval from the Cabinet for the IPOs of other PSUs such as NHPC, Power Grid Corporation and Rural Electrification Corporation.
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