The Cabinet Committee on Economic Affairs has approved the Follow On Public Offer of Power Finance Corporation consisting of:

1. 172,165,005 equity shares of INR 10 each constituting fresh issue of 15% of pre-issue existing paid up capital;

2. In addition to above, 57,388,335 equity shares of INR 10 each representing disinvestment by Government of India of 5% of pre issue paid up capital of PFC

3. Reservation of equity shares for PFC employees subject to the limit prescribed for retail investors by SEBI, which will not exceed 0.12% of the issue size.

4. Discount of 5% of offer price to the retail individual investors and eligible employees.

Fresh issue of equity shares would enable PFC:

A. To meet the eligibility requirement of maintaining a CRAR (Capital to Risk Assets Ratio) of 15% for IFC (Industrial Finance Company) status and

B. To enhance equity base to enable it to meet the growing future investment needs of the power sector.