Sebi seeks information from PFC on IPO

NEW DELHISebi has sought more information from state-run Power Finance Corporation on its proposed Initial Public Offer, which has been delayed after the government put all disinvestment decisions on hold. : Market regulator

"By now it (the IPO) would have been done... (but) we have to submit some more information to the Sebi," PFC Chairman and Managing Director V K Garg said during a function to open the company's new office.

Garg, however, did not elaborate.

PFC had submitted its draft Red Herring Prospectus with the Securities and Exchange Board of India on June 5 for its IPO of 10 per cent fresh equity along with the sale of five per cent government equity.

The power PSU planned to issue 10.3 crore new shares of Rs 10 face value each, while the government was to sell 5.15 crore shares to raise an estimated Rs 1,500 crore. Government holding in the company would have come down to 86.36 per cent from 100 per cent at present.

PFC initially wanted to launch the IPO by early-July, but its plans were delayed after Prime Minister Manmohan Singh earlier this month put on hold all disinvestment proposals and decisions following objections raised by some constituents of the UPA government.

When asked whether PFC has approached Power Ministry for clarification on the status of the public issue, Power Secretary R V Shahi replied in the negative.

Besides PFC, the government's decision to hold divestment also affected forthcoming public offers of National Aluminium Company and Neyveli Lignite Corporation.