State-run Power Finance Corporation has invited applications to appoint up to four lead managers to advise it on the timing and other aspects of the proposed 20 per cent follow-on public offer, which is likely to come in the current fiscal.

"The company will select and appoint up to four merchant bankers with requisite experience in public offerings, who together will form a team and be called book running lead managers," according to the request for proposal by the company.

The government intends to disinvest 5 per cent stake in PFC, while the company would issue fresh shares to the tune of 15 per cent through the follow-on public offer.

"Further, 2,75,460 shares (0.12 per cent of the total issue size) would be reserved for the employees of PFC," it added.

Currently, the government holds 89.78 per cent stake in the company and the remaining 10.22 per cent is held by public.

The bidders interested in advising the government on PFC's FPO should have handled at least one domestic equity issue of the size of Rs 1,000 crore (Rs 10 billion) or more during the period April 1, 2007November 30, 2010.

Interested parties can submit their proposals to the company by January 14, 2011.

The lead managers should advise on the regulatory norms and assist in securing approval and exemptions, wherever necessary, from various regulatory agencies such as Securities and Exchange Board of India, ROC, stock exchanges and RBI.

It should also ensure best returns from the FPO.

The Cabinet, however, is yet to give the final nod for the FPO.