Power Finance Corporation likely to come out with its follow-on public offering early next fiscal, say Government officials

State-owned Power Finance Corporation is likely to come out with its follow-on public offering early next fiscal, Government officials said.

The Centre intends to disinvest 5 per cent stake in Power Finance, while the company would issue fresh shares to the tune of 15 per cent.The company has already invited applications to appoint up to four lead managers to advise it on the timing and other aspects of the proposed issue.

Power Finance Corporation, which is engaged in funding power generation, transmission and distribution projects, plans to use the funds from the issue to finance existing loans and future lending activities.The Government holds 89.78 per cent stake in the firm. It had divested a 10 per cent stake through an initial public offering in 2007.