26-Oct-2023
2 mins read
Power Finance Corporation (PFC), a public financial company, has filed a preliminary shelf prospectus to raise Rs 10,000 crore in funds through non-convertible debentures (NCDs). The NCDs will be secured, rated, listed, and redeemable, each with a face value of Rs 1,000. PFC plans to issue the NCDs in one or multiple tranches. The prospectus was filed with the Bombay Stock Exchange (BSE) on July 6. Please note that the current status and developments of this filing should be verified through up-to-date sources or the BSE.
Power Finance Corporation Limited (PFC) is a well-established public financial institution in India, founded in 1986. It is recognized as a prestigious Schedule-A Maharatna Central Public Sector Enterprises (CPSE). PFC’s main objective is to provide financial support to the power sector, working closely with various entities, including Government of India agencies, state governments, power sector utilities, intermediaries, and private sector clients. The company is committed to promoting the growth and development of the power sector in India by formulating and implementing policies and introducing structural and procedural reforms. This commitment underscores PFC’s significant role in advancing the power sector landscape in the country while adhering to ethical standards and ensuring a plagiarism-free representation of its accomplishments and operations.
Important Dates for Power Finance Corporation Right Issue
| Issue Open | Jul 21, 2023 – Jul 28, 2023 |
| Security Name | Power Finance Corporation Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs [.] Crores |
| Issue Size (Shelf) | Rs 10,000.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | CARE AAA, Stable by CARE Ratings Limited, CRISIL AAA/Stable by CRISIL Limited and ICRA AAA, Stable by ICRA Limited |
| Tenor | 3, 10, and 15 years |
| Series | Series I to III |
| Payment Frequency | Annually |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Beacon Trusteeship Limited |
Power Finance Corporation Limited NCD Coupon Rates
| # | Series 1 | Series 2 | Series 3 |
| Frequency of Interest Payment | Annual | Annual | Annual |
| Nature | Secured | Secured | Secured |
| Tenor | 3 Years | 10 Years | 15 Years |
| Coupon (% per Annum) | 7.50% | 7.53% | 7.55% |
| Effective Yield (% per Annum) | 7.49% | 7.52% | 7.54% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 |
NCD Ratings
The proposed NCDs have been rated “AAA” by CARE, CRISIL, and ICRA, indicating their excellent credit quality and stability.
Company Promoters
The promoter of the company is the President of India, representing the Ministry of Power, Government of India.
Company Financials
Power Finance Corporation Limited Financial Information (Restated Consolidated)
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves and Surplus |
| 31-Mar-21 | 775,707.08 | 71,700.67 | 15,716.20 | 81,790.25 | 60,371.31 |
| 31-Mar-22 | 791,000.27 | 76,344.92 | 18,768.21 | 96,275.15 | 69,310.98 |
| 31-Mar-23 | 896,111.86 | 77,625.19 | 21,178.59 | 111,981.28 | 82,507.74 |
Net Proceeds
- At least 75% of the net proceeds from the issuance will be used for onward lending, refinancing existing debts, and debt servicing.
- The remaining 25% will be allocated for general corporate purposes.
FAQ-
1. When will the Power Finance Corporation NCD April 2023 public issue be launched?
The Power Finance Corporation (PFC) NCD April 2023 public issue is scheduled to be launched on July 21, 2023.
2. What are the key dates for the PFC’s NCD April 2023 issue?
Key dates for the NCD April 2023 issue are as follows:
Issue Open: Jul 21, 2023
Issue Close: Jul 28, 2023
3. What is the face value of each PFC’s NCD April 2023 bond?
The face value of each NCD April 2023 bond is Rs 1,000.
4. What is the interest payment frequency for NCD April 2023?
The interest payment frequency for NCD April 2023 is annual.
5. What is the minimum application size for investing in the PFC’s NCD April 2023 public issue?
The minimum application size is Rs 10,000.
6. What is the subscription closing date for the Power Finance Corporation NCD in April 2023?
The subscription for the Power Finance Corporation NCD April 2023 is scheduled to close on July 28, 2023.
7. What are the maturity periods of the NCD April 2023 bonds?
The maturity periods of the NCD April 2023 bonds are as follows:
Series 1: 3 years
Series 2: 10 years
Series 3: 15 years
8. What is the issue size of the Power Finance Corporation NCD April 2023?
The issue size of the Power Finance Corporation NCD April 2023 is Rs 10,000 crore.
9. On which stock exchange is the Power Finance Corporation NCD April 2023 proposed to be listed?
The Power Finance Corporation Limited NCD April 2023 is proposed to be listed on the Bombay Stock Exchange (BSE)