US-based Clear Investments and government-owned Power Finance Corp (PFC) have joined hands to float a $1-billion private equity fund for the Indian power sector. Their plan is to increase the size of the fund to $10 billion by 2012 with the sector entering the boom phase in the country.
PFC, which was appointed as the advisory to the investments, has evinced interest in picking up 20% stake in the power fund. PFC has submitted a letter of intent (LoI) to invest $200 million, according to Deepak Kavadia, managing director of the parent company Clear Trade.
The fund, which has an advisory board in India, will invest $250 million to pick up stake in Indian power companies through pre-public offering by March 2008, said Mr Kavadia.
Read more in The Economic Times article.
Showing posts with label PFC. Show all posts
Showing posts with label PFC. Show all posts
Monday, January 14, 2008
Wednesday, August 22, 2007
PGCIL aims to raise Rs 580 cr through IPO
Power Grid Corporation of India Ltd (PGCIL), the country's biggest transmission utility, on Wednesday filed its red herring prospectus with market regulator SEBI for its initial public offer to raise an estimated 580 crore.
PGCIL is the third central power utility to tap the capital market for raising funds after NTPC Ltd in 2004 and Power Finance Corporation early this year.Like NTPC and PFC, the government will piggyback on PGCIL IPO to divest five per cent of its stake. While NTPC had raised around Rs 5,400 crore, PFC had mopped up nearly Rs 1,000 crore. Power Grid is expected to mobilise up to Rs 580 crore, sources said.
The public issue comprises 57.39 crore equity shares of Rs 10 each. This includes a fresh issue of 38.26 crore shares by PGCIL and an offer for sale of 19.13 crore shares by the government. About 1.39 crore shares have been reserved for employees and the net issue to public is 55.99 crore shares.
The company will issue shares at a price to be decided through the book building process and the shares will be listed on Bombay Stock Exchange and National Stock Exchange.
Kotak Mahindra Capital Company Ltd, Citigroup global Markets India and Enam Financial Consultants are the book running lead managers to the issue.
PGCIL is the third central power utility to tap the capital market for raising funds after NTPC Ltd in 2004 and Power Finance Corporation early this year.Like NTPC and PFC, the government will piggyback on PGCIL IPO to divest five per cent of its stake. While NTPC had raised around Rs 5,400 crore, PFC had mopped up nearly Rs 1,000 crore. Power Grid is expected to mobilise up to Rs 580 crore, sources said.
The public issue comprises 57.39 crore equity shares of Rs 10 each. This includes a fresh issue of 38.26 crore shares by PGCIL and an offer for sale of 19.13 crore shares by the government. About 1.39 crore shares have been reserved for employees and the net issue to public is 55.99 crore shares.
The company will issue shares at a price to be decided through the book building process and the shares will be listed on Bombay Stock Exchange and National Stock Exchange.
Kotak Mahindra Capital Company Ltd, Citigroup global Markets India and Enam Financial Consultants are the book running lead managers to the issue.
Tuesday, August 14, 2007
State-Run Power Finance Corp In Talks With Goldman, Blackstone For $1-B Fund
The Indian government-owned Power Finance Corp (PFC) plans to launch a private equity fund for investing in the domestic power sector. PFC is reportedly in talks with leading investment bankers including Goldman Sachs for raising the fund. The fund, which is expected to have $1 billion in corpus, is intended to support the last-mile equity requirement of power projects.
The fund is likely to be registered in overseas tax havens like Mauritius, Cyprus or Isle of Mann to get maximum tax benefits for the investors and encourage them to increase exposure to the power sector.Mauritius is apparently the first priority for the company.
All the approvals from the power and finance ministries have been obtained and the company may announce the fund later this month, the report adds. The power sector needs a about $250 billion investment, while it needs at least $75 billion in equity support.
The fund is likely to be registered in overseas tax havens like Mauritius, Cyprus or Isle of Mann to get maximum tax benefits for the investors and encourage them to increase exposure to the power sector.Mauritius is apparently the first priority for the company.
All the approvals from the power and finance ministries have been obtained and the company may announce the fund later this month, the report adds. The power sector needs a about $250 billion investment, while it needs at least $75 billion in equity support.
Tuesday, June 19, 2007
PFC to mop up $1 b from overseas mkts
Power Finance Corporation (PFC) is planning to tap the overseas market to raise a whopping $1 billion in the current fiscal. The borrowing programme is aimed at meeting the funding requirements of the power sector, which requires an estimated Rs 8,50,000 crore during the 11th Plan to add 68,869 mw of fresh capacity.
The company also plans to raise Rs 9,000 crore of debt by floating power bonds in the domestic market to get wider retail participation. A portion of it would also be raised through FCCBs.
PFC is a nodal funding agency in the power sector that provides debt and quasi equity to projects. The company was listed in February after an IPO through which it raised about Rs 1,000 crore.
For its overseas borrowings, the company has secured RBI’s approval to raise $500 million through external commercial borrowings (ECBs). The official said after this fundraising exercise, the company would seek the apex bank’s approval for raising $500 million more in the overseas markets through a diversified portfolio of instruments such as floating power bonds, looking at the ADR/GDR route or lines of credit with international financial institutions such as ADB.
“The company’s first tranche of borrowings this year is already in an advanced stage. PFC would launch a roadshow next week in the US to raise $300 million through private placement. It would also seek approval to raise resources through Euro bonds. Another $200 million is proposed to be raised through syndicated loans. The entire borrowings programme would be launched in two months,” the official said.
Funds worth Rs 12,500 crore are expected to be raised by PFC in the domestic market this fiscal. Apart from bonds, it would raise medium-term loans worth Rs 3,500 crore from institutions.
Read more in The Economic Times article.
The company also plans to raise Rs 9,000 crore of debt by floating power bonds in the domestic market to get wider retail participation. A portion of it would also be raised through FCCBs.
PFC is a nodal funding agency in the power sector that provides debt and quasi equity to projects. The company was listed in February after an IPO through which it raised about Rs 1,000 crore.
For its overseas borrowings, the company has secured RBI’s approval to raise $500 million through external commercial borrowings (ECBs). The official said after this fundraising exercise, the company would seek the apex bank’s approval for raising $500 million more in the overseas markets through a diversified portfolio of instruments such as floating power bonds, looking at the ADR/GDR route or lines of credit with international financial institutions such as ADB.
“The company’s first tranche of borrowings this year is already in an advanced stage. PFC would launch a roadshow next week in the US to raise $300 million through private placement. It would also seek approval to raise resources through Euro bonds. Another $200 million is proposed to be raised through syndicated loans. The entire borrowings programme would be launched in two months,” the official said.
Funds worth Rs 12,500 crore are expected to be raised by PFC in the domestic market this fiscal. Apart from bonds, it would raise medium-term loans worth Rs 3,500 crore from institutions.
Read more in The Economic Times article.
Friday, May 25, 2007
Cos like HAL, NALCO, PFC will get navratna status
Hindustan Aeronautics Ltd, National Aluminium Co and Power Finance Corp are among the seven public sector firms that would be given the navratna status soon, Minister for Heavy Industries Santosh Mohan Dev said on Friday.
An apex committee had recommended granting of navratna status to HAL, NALCO, PFC, Bharat Electronics Ltd, National Mineral Development Corporation, Power Grid Corporation of India and Rural Electrification Corporation Ltd, he said.
He said these would be granted the status as soon as they induct independent directors on their board.
With these, the number of navratna CPSUs under the Heavy Industry ministry would increase from nine to 16. Oil and Natural Gas Corp, NTPC Ltd, BHEL and Indian Oil are among the nine existing navratna companies.
Read more in The Economic Times article
An apex committee had recommended granting of navratna status to HAL, NALCO, PFC, Bharat Electronics Ltd, National Mineral Development Corporation, Power Grid Corporation of India and Rural Electrification Corporation Ltd, he said.
He said these would be granted the status as soon as they induct independent directors on their board.
With these, the number of navratna CPSUs under the Heavy Industry ministry would increase from nine to 16. Oil and Natural Gas Corp, NTPC Ltd, BHEL and Indian Oil are among the nine existing navratna companies.
Read more in The Economic Times article
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