The offer for sale (OFS) would take place on July 27. "The floor price of the offer ... shall be Rs 254 per equity share of Power Finance Corporation (PFC)," the company said in a BSE filing. PFC would be the second PSU to be divested under the Government's disinvestment programme of the current fiscal. In April, government had sold stake in REC.

The floor price of Rs 254 a share is at a discount of 2.14 percent over yesterday's closing price of Rs 259.55. At the floor price, the government is expected to mobilise around Rs 1,676 crore through the divestment.

At present, government holds 72.80 percent equity in Power Finance Corporation. After sale of 6.60 crore shares representing 5 percent stake on offer, government's holding will be reduced to 67.80 percent.

PFC would be the first disinvestment under the modified OFS rules of SEBI under which companies are allowed to disclose stake sale plans two 'banking' days ahead of the issue. The Department of Disinvestment had approached SEBI in March saying they do not want trading days in-between the announcement and stake sale.

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