PFC IPO ......must apply

investors can consider subscribing to Power Finance Corporation's IPO, given the strong momentum the power sector is witnessing and its position as prime lender to the sector..

PFC is a specialty financial institution involved in financing power sector projects.PFC had revenues of Rs.38,562 crore as in sep'06

PFC has been appointed as the nodal agency for ultra mega power projects(UMPP) envisaged by gov.

valuations: of late the power sector has seen significant reforms lead by introduction of the Electricity Act and revamp of existing infrastructure.PFC has exclusive relationship with gov. and other stakeholders in domestic power sector.PFC will also benefit from its knowledge of the sector by offering advisory services to its clients,allowing it to generate significant revenues.....

PFC's IPO is attractively priced at 1.23x post-issue book and around 12x annualised FY07 earnings......this compares favourably with peers like IDFC at around 3x book and 18x trailing earnings....