Chittorgarh.com Logo
Loading...

Power Finance FPO Details

Issue Open May 10, 2011
Issue Close May 13, 2011
IPO Price ₹203
Face Value ₹10
IPO Size ₹4,578.20 Cr
Listing At BSE, NSE
IPO Lot Size 28

Power Finance Corporation Limited

Our Company was incorporated in New Delhi on July 16, 1986 under the Companies Act, 1956, as amended (the 'Companies Act'), as a public limited company. For information on change in the registered office of our Company, see section titled 'History and Certain Corporate Matters' on page 133 of the Prospectus. Registered Office: 'Urjanidhi', 1, Barakhamba Lane, Connaught Place, New Delhi 110 001, India Tel: +91 (11) 2345 6000 Fax: +91 (11) 2341 2545. Company Secretary and Compliance Officer: Mr. J.S. Amitabh Tel: +91 (11)2345 6020 Fax: +91 (11)23456786 E-mail: fpo@pfcindia.com. Website: www.pfcindia.com.

BASIS OF ALLOTMENT

FURTHER PUBLIC ISSUE OF 229,553,340 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH ('EQUITY SHARES') OF POWER FINANCE CORPORATION LIMITED ('POWER FINANCE', 'OUR COMPANY' OR 'THE ISSUER') FOR CASH AT A PRICE OF RS. 203* PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 193 PER EQUITY SHARE) AGGREGATING RS. 45,781.96 MILLION** (THE 'ISSUE'). THE ISSUE COMPRISES A FRESH ISSUE OF 172,165,005 EQUITY SHARES BY OUR COMPANY (THE 'FRESH ISSUE') AND AN OFFER FOR SALE OF 57,388,335 EQUITY SHARES BY THE PRESIDENT OF INDIA ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA (THE 'SELLING SHAREHOLDER') (THE 'OFFER FOR SALE'). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 229,277,876 EQUITY SHARES (THE 'NET ISSUE') AND A RESERVATION OF NOT MORE THAN 275,464 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE 'EMPLOYEE RESERVATION PORTION'). THE ISSUE WOULD CONSTITUTE 17.39% OF THE POST ISSUE PAID-UP EQUITY CAPITAL OF OUR COMPANY AND THE NET ISSUE WOULD CONSTITUTE 17.37% OF THE POST ISSUE PAID-UP EQUITY CAPITAL OF OUR COMPANY.

THE FACE VALUE OF THE EQUITY SHARE IS RS. 10 EACH AND THE ISSUE PRICE IS 20.3 TIMES THE FACE VALUE.

'Discount of 5% to the Issue Price being RS. 10.15 per Equity Share determined pursuant to completion of the Book Building Process was offered to Eligible Employees and to Retail Bidders. Discount was not offered on application, but on Allotment. The excess amount paid on application will be refunded to such Bidders or will be unblocked from their ASBA Accounts as the case maybe, after Allotment.

'Pursuant to finalisation of the basis of allotment, the Issue size stands revised to RS. 45,781.96 million from RS 45,782.02 million mentioned in the Prospectus. This Issue is through the Book Building Process where up to 50% of the Net Issue was allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') ('QIB Portion'). Further, 5% of the QIB Portion was available for allocation on a proportionate basis to Mutual Funds only. The remainder of the QIB Portion was available for allocation on a proportionate basis to QIBs including Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. In addition, not less than 15% of the Net Issue was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue was available for allocation on a proportionate basis to Retail Bidders, subject to valid Bids being received at or above the Issue Price. Any Bidder could have participated in this Issue through the ASBA process by providing the details of the ASBA Accounts. For more information, specific attention is invited to the section titled 'Issue Procedure' on page 395 of the Prospectus.

PROMOTER: PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA


The Issue received 258,497 applications for 989,078,160 Equity Shares resulting in 4.31 times over- subscription. The details of the applications received (before technical rejections) in the Issue from Qualified Institutional Buyers, Non-Institutional Investors, Retail Bidders and Eligible Employees are as under:

Sr. No Category No. of applications received No. of Equity Shares Amount(Rs.) No. of times subscribed
1 Retail Bidders 257,819 158,359,348 32,149,475,393.00 1.97
2 Non-Institutional Bidders 244 37,209,984 7,575,990,604.00 1.08
3 Qualified Institutional Bidders 156 793,268,812 161,027,970,740.00 6.92
4 Eligible Employees 278 240,016 48,736,912.00 0.87
Total 258,497 989,078,160 200,802,173,649.00 4.31

Final Demand
A summary of the final demand as per the Bombay Stock Exchange Limited (the'BSE') and National Stock Exchange of India Limited (the' NSE') as on the Bid/ Issue Closing Date at different prices within the Price Band is as detailed here under:

Bid Priced
(Rs. per Equity Share)
No. of Equity Shares % of total demand Cumulative total demand % of Cumulative total demand
193 8,814,512 0.870 8,814,512 0.870
194 20,328 0.002 8,834,840 0.872
195 1,274,336 0.126 10,109,176 0.998
196 13,216 0.001 10,122,392 0.999
197 168,448 0.017 10,290,840 1.016
198 8,530,564 0.842 18,821,404 1.858
199 10,500 0.001 18,831,904 1.859
200 97,832 0.010 18,929,736 1.868
201 58,520 0.006 18,988,256 1.874
202 11.116 0.001 18,999,372 1.875
203 856,651,516 84.545 875,650,888 86.420
at Cut-off Price 137,595,892 13.580 1,013,246,780 100.000
Total 1,013,246,780 100.000

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange, being the NSE on May 23,2011.

A. Eligible Employees (after Technical Rejections)

The Basis of Allocation to the Eligible Employees, who had bid at Cut-off or the Issue Price of Rs 203/- per Equity Share (including a discount of 5% on the Issue Price), was finalized in consultation with the NSE. The category was subscribed to the extent of 0.87 times and the total number of Equity Shares allotted in this category is 240,016. The under-subscribed portion of 35,448 Equity Shares has been added to the Net Issue and distributed to QIB, Retail and Non-Institutional Bidders category in the ratio of 50:35:15.

B. Allocation to Retail Bidders (including Applications Supported by Blocked Amount ('ASBA')) (after Technical Rejections)

The Basis of Allocation to the Retail Bidders, who had bid at Cut-off or at the Issue Price of Rs 203/- per Equity Share (including adiscount of 5% on the Issue Price), was finalized in consultation with the NSE. This category has been over-subscribed to the extent of 1.959964 times. There were 83,803 applications for 859,774,664 Equity Shares made under ASBA process in this category. Of these, 79,834 applications for 46,348,288 Equity Shares were found valid and considered for allocation. The total number of Equity Shares allotted in Retail Bidders category is 80,288,364 Equity Shares (including a spill-over of 41,107 Equity Shares from the Eligible Employees and Non-Institutional Bidders categories) which were allotted to 249,334 successful applicants. The category-wise details of the Basis of Allocation are as under:

Category No. of applications received % to total Total no. of Equity Shares applied % of total No. of Equity Shares allocated Ratio Total no. of Equity Shares allocated
28 10,818 4.24 302,904 0.19 28 16:33 146,860
56 12,527 4.91 701,512 0.45 29 FIRM 363,283
84 6,439 2.53 540,876 0.34 43 FIRM 276,877
112 9,666 3.79 1,082,592 0.69 57 FIRM 550,962
140 7,747 3.04 1,084,580 0.69 71 FIRM 550,037
168 2,720 1.07 456,960 0.29 86 FIRM 233,920
196 2,887 1.13 565,852 0.36 100 FIRM 288,700
224 5,682 2.23 1,272,768 0.81 114 FIRM 647,748
252 3,692 1.45 930,384 0.59 129 FIRM 476,268
280 7,573 2.97 2,120,440 1.35 143 FIRM 1,082,939
308 1,609 0.63 495,572 0.31 157 FIRM 252,613
336 1,462 0.57 491,232 0.31 171 FIRM 250,002
364 958 0.38 348.712 0.22 186 FIRM 178.188
392 1,153 0.45 451,976 0.29 200 FIRM 230,600
420 2,333 0.92 979,860 0.62 214 FIRM 499,262
448 1,688 0.66 756,224 0.48 229 FIRM 386,552
476 43,848 17.20 20,871,648 13.26 243 FIRM 10,655,064
504 4,910 1.93 2,474,640 1.57 257 FIRM 1,261,870
532 584 0.23 310,688 0.20 271 FIRM 158,264
560 2,949 1.16 1,651,440 1.05 286 FIRM 843,414
588 531 0.21 312,228 0.20 300 FIRM 159,300
616 615 0.24 378,840 0.24 314 FIRM 193,110
644 317 0.12 204,148 0.13 329 FIRM 104,293
672 302 0.12 20,944 0.13 343 FIRM 103,586
700 1,205 0.47 843,500 0.54 357 FIRM 430,185
728 843 0.33 613,704 0.39 371 FIRM 312,753
Additional 1 1:63 13
756 542 0.21 409,752 0.26 386 FIRM 209,212
784 420 0.16 329,280 0.21 400 FIRM 168,000
812 275 0.11 223,300 0.14 414 FIRM 113,850
840 1,221 0.48 1,025,640 0.65 429 FIRM 523,809
868 356 0.14 309,008 0.20 443 FIRM 157,708
896 406 0.16 363,776 0.23 457 FIRM 185,542
924 382 0.15 352,968 0.22 471 FIRM 179,922
952 703 0.28 669,256 0.43 486 FIRM 341,658
980 115.544 45.33 113.233.120 71.96 500 FIRM 57.772.000

C. Allocation to Non-Institutional Bidders (after Technical Rejections)

The Basis of Allocation to the Non-Institutional Bidders, who had bid at the Issue Price of Rs 203/- per Equity Share, was finalized in consultation with the NSE. This category has been subscribed to the extent of 0.997974 times and hence allotment was done on full and firm basis to all valid applicants. There were 109 applications for 27,737,332 Equity Shares made under ASBA process in this category. Of these, 65 applications for 26,171,460 Equity Shares were found valid and considered for allocation. The total number of Equity Shares allotted in Non-Institutional Bidders category is 34,327,300 Equity Shares which were allotted to 176 successful applicants. The under-subscribed portion of 64,382 Equity Shares has been added to the Net Issue and distributed to Retail and QIB category in the ratio of 35:50.

D. Allocation to QIBs

The Basis of Allocation to the Qualified Institutional Bidders, who had bid at the Issue price of Rs 203/- per Equity Share was finalized on the proportionate basis. In accordance with the SEBI Regulations, 5% of the Equity Shares under the QIB Portion was allocated only to the Mutual Funds. The balance QIB Portion was allocated on a proportionate basis to all QIBs including Mutual Funds. There were 139 applications for 785,129,072 Equity Shares made under ASBA process in this category. Of these, 138 applications for 784,429,072 Equity Shares were found valid and considered for allocation. The total number of Equity Shares allotted in Qualified Institutional Bidders category is 114,697,660 Equity Shares (including a spill-over of 58,723 Equity Shares from the Eligible Employees and Non-Institutional Bidder categories) which were allotted to 155 successful applicants.

Category Fls/Banks Flls MFs ICs Total
No. of Equity Shares allotted 50,379,199 34,811,534 17,953872 11,553,055 114,697,660
Post Issue shareholding* 18,390,961 78,241,278 38,358,312 45,673,210 180,663,761
Percentage of shareholding* 1.39 5.93 2.91 3.46 13.69

*as on May 24,2011

The Board of Directors of the Company at its meeting held at Hyderabad on May 24,2011 has approved the Basis of Allocation of Equity Shares of the Issue and has accordingly allotted the Equity Shares to the successful Bidders.

The CAN-cum-Refund Orders and/ or Allotment advice and/ or notices will be dispatched to the respective addresses of the Bidders as registered with the depositories on or prior to May 26,2011. The instructions to Self Certified Syndicate Banks have been dispatched on or prior to May 24,2011. In case the same is not received within ten (10) days, Bidders may contact at the address given below. The Refund Orders have been over-printed with the bank account details as registered, if any, with the depositories. The Equity Shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Company is taking steps to get the Equity Shares offered in Fresh Issue portion admitted for trading on the BSE and the NSE within twelve (12) Working Days from the date of Bid/Issue Closing Date.

E. Post Issue shareholding of different categories of Individuals
The Dost Issue shareholding of different categories of individuals as on Mav 24.2011. is mentioned below:

Category of Individuals Individual shareholders holding nominal share capital up to Rs  0.10 million Individual shareholders holding nominal share capital in excess of Rs 0.10 million Non Resident Indians Foreign Nationals Employees
No. of equity shares held 85,545,960 4,535,119 714,578 240 1,100,641
Percentage of shareholding 6.49 0.34 0.05 0.00 0.08

F. Post Issue shareholding of other categories of investors

The post Issue shareholding of other categories of investors as on May 24,2011 is mentioned below:

Category Body corporates OCBs Trusts Clearing members HUF
No. of equity shares held 64,290,853 Nil 31,282 1,031,597 8,956,009
Percentage of shareholding 4.87 Nil 0.00 0.08 0.68

INVESTORS PLEASE NOTE:

This details of the allocation made would be hosted on the website of Registrar to the Issue, Karvy Computershare Private Limited at http://karisma.karvy.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicant, serial number of the Bid-cum- Application Form, number of Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

Karvy Computershare Private Limited ,
Unit: Power Finance orporation Limited
Plot No. 17 to 24, Vithalrao Nagar, Hitech City Road, Madhapur, Hyderabad 500081,
Fax: 040-23420814, Email: einward.ris@Karvy.com

TOLL-FREE HELPLINE NUMBER: 1-800-3454001

Place: New Delhi
Date : May26,2011
For Power Finance Corporation Limited
Sd/-
J.S.Amitabh
Company Secretary

Power Finance FPO Basis of Allotment FAQs

Check the basis of allotment document above to know about how the shares are allocated in Power Finance FPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

The Power Finance FPO basis of allotment (published above) tells you how shares are allocated to you in Power Finance FPO and category wise demand of IPO share.

Visit the Power Finance FPO allotment status page to check the number of shares allocated to your application.

Check the basis of allotment document above to know about how the shares are allocated in Power Finance FPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).