Power sector doing well in the markets despite concerns

Shares of Power Finance Corporation, a public sector financier of transmission and power projects, outperformed the market on Monday after the government successfully sold a 5 percent stake via the Offer for Sale route.

The government sold 6.6 crore shares via the exchanges raising roughly 1,700 crore rupees today in order to bridge its fiscal deficit target and also raise funds via divestment of shares in profit making PSU companies. It offered a 5 percent discount to retail investors also reserving a fifth of the shares for them. The government set a floor price of 254 rupees per share for PFC.

PFC fell 2.25 rupees, or 0.9 percent, to 257.30 rupees on the National Stock Exchange. In comparison, the Nifty was down 1.5 percent. The company has a market capitalisation of 33,900 crore rupees, flat over one year as investors stayed away from government controlled entities.

(Image credits: wikipedia)