Power Finance to launch share sale on May 10 to raise $1.2 billion

Power Finance Corporation Ltd will launch a share sale to raise up to $1.2 billion on May 10, the biggest equity issue so far this year, four sources with direct knowledge of the matter said on Tuesday.                                         

The follow-on issue will close on May 12 for institutional investors and a day later for retail bidders, said the sources, who declined to be named as the information was not public yet.

Power Finance chairman and managing director Satnam Singh did not respond to calls from Reuters seeking comment. Power Finance, a lender to power projects, plans to sell 15% fresh equity shares while the government will divest 5% stake in the firm, the company has said in its prospectus filed with the regulators.