Power Finance Corporation NCD Company Profile:
Power Finance Corporation Ltd. (P.F.C.) is an Indian central public sector undertaking under the ownership of the Ministry of Power, Government of India. It was founded in 1986 and serves as the financial foundation of the Indian power industry. PFC has a net worth of INR 383 billion as of September 30, 2018. According to the Department of Public Enterprises Survey for FY 2017–18, PFC is the eighth-highest profit-making Central Public Sector Undertaking (CPSU). PFC is both India’s largest NBFC and largest infrastructure financing institution. On October 12, 2021, the government changed the status of PFC from “Navratna” to “Maharatna.”.
Power Finance Corporation Limited is coming out with a debt offering of Secured, Rated, Listed Redeemable Non-Convertible Debentures with a face value of Rs. 1000 each, Base Issue size of ₹ 500 Crore with an option to retain oversubscription up to ₹ 4,500 Crores aggregating up to ₹ 5,000 crores being the Tranche-I Issue size. The issue opens for subscription on Friday, 21st July 2023 and will close on or before Friday, 28th July 2023. The allotment is on a first come first serve basis with the minimum application to be made is of 10 NCDs.
Power Finance Corporation NCD Details:
| Tranche I Issue opens: | Friday, 21st July 2023 | ||||
| Tranche I Issue closes: | Friday, 28th July 2023 | ||||
| Allotment: | First Come First Serve Basis | ||||
| Face Value: | ₹ 1,000 per NCD | ||||
| Nature of Instrument: | Secured, Rated, Listed Redeemable Non-Convertible Debentures | ||||
| Minimum Application: | 10 NCDs (₹ 10, 000) & in multiple of 1NCD | ||||
| Listing: | Proposed on BSE | ||||
| Credit Rating: | ‘AAA; Stable’ by CARE Ratings, ‘AAA/Stable’ by CRISIL Ltd and ‘AAA (Stable)’ by ICRA Ltd | ||||
| Tranche I Issue Size: | Base Issue size of ₹ 500 Crore with a Green Shoe option of up to ₹ 4,500 Crore aggregating up to ₹ 5,000 Crore being the Tranche-I Issue size. | ||||
| Registrar: | Link Intime India Pvt Ltd | ||||
| Category | I – Institutional (“QIB”) | II – Non-Institutional (“Corporates”) | III – High Net worth
Individual (“HNI”) (Amount aggregating to above ₹ 10 lakh) |
IV – Retail Individual (“Retail”) (Amount aggregating up to and including ₹ 10 lakh) | |
| Category Allocation of the overall Issue Size | 10% | 10% | 40% | 40% | |
| Bucket Size (₹) assuming Issue size of ₹ 5000 Cr | ₹ 500 Cr | ₹ 500 Cr | ₹ 2,000 Cr | ₹ 2,000 Cr | |
Power Finance Corporation NCD
Application form
Power Finance Corporation NCD Specific Terms of the Prospectus:
The terms of the NCDs offered under the Issue are as follows:
| Series | I | II | III |
| Frequency of Interest Payment | Annual | Annual | Annual |
| Tenor | 3 Years | 10 Years | 15 Years |
| Base Coupon Rate (% p.a.) for NCD Holders in: | |||
| Category I & II | 7.45% | 7.47% | 7.50% |
| Category III & IV | 7.50% | 7.53% | 7.55% |
| Effective Yield (% p.a.) for : | |||
| Category I & II | 7.44% | 7.46% | 7.49% |
| Category III & IV | 7.49% | 7.52% | 7.54% |
| Amount (₹ / NCD) on Maturity for * : | |||
| Category I, II, III & IV | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- |
*- Subject to applicable tax deducted at source, if any. The company shall allocate and allot Series II NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.
For any queries related to the NCD, you can consult the team at Elite Wealth. Since Demat is mandatory for investing in this particular NCD, the investor must open a Demat account with a trusted broker like Elite Wealth.