Power Finance Corporation (PFC) plans to buy minority stakes in power projects. The company is in the process of appointing a consultant who will assist in drafting a suitable policy framework for equity investment. The company also plans to offer equity syndication opportunities for projects to increase its fee-based income.
The company has never made equity investment in projects before. Power Finance’s follow-on offer is scheduled to open on May 10. This will be the first disinvestment in a state-owned firm in the new fiscal.
The company plans to sell 15% in fresh equity shares while the government will divest 5% stake to raise about 6,000 crore. The government holding in the company came down to 89.8% in 2007 after it sold 10% stake in an initial public offer. Power Finance has already incorporated a subsidiary, Power Equity Capital Advisors Private, to provide consultancy services related to equity investments in the sector.
