Friday, February 25, 2011

Tax saving PFC-Public Issue infra bonds

Power Finance Corporation Public Issue bonds infrastructure bond, opens Feb 24 2011 offering a fixed rate of interest of up to 8.5% payable annually or on a cumulative basis:Power Finance Corporation has come out through tax-free infrastructure bonds in the current financial year it plans to raise up to Rs. 5,600 crore . The bonds have a face value of Rs 5,000 with 10 years and 15 years maturity. There is a lock-in period of 5 years from the date of allotment and the public issue of tax-free
infrastructure bonds is secured, redeemable, non-convertible debentures of Rs. 5,000 face value each will open for subscription on February 24 and close on March 22.
State-run Power Finance Corporation (PFC) today said it has appointed four merchant bankers-- Goldman Sachs, JM Financial, DSP Merill Lynch and ICICI Securities-- to manage the Rs 5,600 crore follow-on public offer."Goldman Sachs, JM Financial, DSP Merill Lynch and ICICI Securities have been chosen to handle PFC's follow on public offer (FPO)," PFC Chairman and Managing Director Satnam Singh told reporters here.
Earlier this month, the Cabinet Committee on Economic Affairs had approved the FPO of PFC.The company will also infuse 15 per cent fresh equity by issuing 17,21,65,005 shares of Rs 10. The offer would comprise 5 per cent disinvestment of the government's share in PFC through putting 5,73,88,335 crore shares of Rs 10 on sale.At the current market price, the issue is likely to fetch Rs 5,656 crore.reports PTI

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