Power Finance Corporation NCD opens for subscription from 21 July 2023. the company aims for a base issue size of ₹500 Crores.
About the company
Incorporated in 1986, Power Finance Corporation Limited (PFC) is one of India’s leading public financial institutions and a Schedule-A Maharatna Central Public Sector Enterprises (CPSE), focused on the power sector. PFC works with Government of India agencies, state governments, power sector utilities, other power sector intermediaries, and private sector clients for the development and implementation of policies and structural and procedural reforms in the power sector in India.
The company’s portfolio includes financial products and services such as rupee term loans, short-term loans, equipment lease financing, transitional financing services, etc. for various power projects in the generation, transmission, and distribution sectors. PFC is registered with the RBI as a non-deposit-taking systemically important NBFC. PFC was granted the ‘Navratna’ status by the GoI in 2007 and ‘Maharatna’ status in 2021.
The company provides a range of financial products and other services including:
- various forms of fund-based assistance, including long-term project finance, short/medium-term loan to equipment manufacturers, buyers’ lines of credit, underwriting of debt, and debt refinancing schemes.
- various forms of non-fund-based assistance including default payment guarantees, credit enhancement guarantees, guarantees for the performance of contracts/ obligations, and letters of comfort.
- services ranging from project conceptualization to the post-commissioning stage, including generation (conventional and renewable), transmission and distribution projects, and related renovation and modernization projects; and
- various fee-based technical advisory and consultancy services for power sector projects through our wholly-owned subsidiary PFC Consulting Limited.
Objectives of the Issue
- For the purpose of onward lending, financing / refinancing the existing indebtedness of the company, and/or debt servicing (payment of interest and/or repayment/prepayment of interest and principal of existing borrowings of the company), and
- General corporate purposes.
Power Finance Corporation NCD July 2023 Details
| 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) | ₹ 500.00 Crores |
| Issue Size (Shelf) | ₹ 5,000.00 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 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 |
Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 3 Years | Annual | 7.45% (for categories 1 & 2) | 7.44% (for categories 1 & 2) | ₹ 1,000 |
| Series 1 | 3 Years | Annual | 7.50% (for categories 3 & 4) | 7.49% (for categories 3 & 4) | ₹ 1,000 |
| Series 2 | 10 Years | Annual | 7.47% (for categories 1 & 2) | 7.46% (for categories 1 & 2) | ₹ 1,000 |
| Series 2 | 10 Years | Annual | 7.53% (for categories 3 & 4) | 7.52% (for categories 3 & 4) | ₹ 1,000 |
| Series 3 | 15 Years | Annual | 7.50% (for categories 1 & 2) | 7.49% (for categories 1 & 2) | ₹ 1,000 |
| Series 3 | 15 Years | Annual | 7.55% (for categories 3 & 4) | 7.54% (for categories 3 & 4) | ₹ 1,000 |
NCD Rating
The NCDs proposed to be issued under the issue have been rated “CARE AAA, Stable” by CARE Ratings Limited, “CRISIL AAA/Stable” by CRISIL Limited, and “ICRA AAA, Stable” by ICRA Limited.
Company Financials
| 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 |
NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 500,000 |
| Non-Institutional | 500,000 |
| HNI | 2,000,000 |
| Retail | 2,000,000 |
| Total NCD’s | 5,000,000 |
Company Promoters
The promoter of the company is the President of India acting through the Ministry of Power, Government of India.
NCD Lead Manager
JM FINANCIAL LIMITED
7th Floor, Cnergy, Appasaheb Marathe Marg,
Prabhadevi Mumbai – 400 025
Phone: +91 22 6630 3030
Email: pfc.bondissue2023@jmfl.com
Website: www.jmfl.com
A.K. CAPITAL SERVICES LIMITED
603, 6th Floor, Windsor Off CST Road,
Kalina Santacruz (East), Mumbai – 400 098 Maharashtra
Phone: +91 22 6754 6500
Email: pfc.ncd2023@akgroup.co.in
Website: www.akgroup.co.in
NUVAMA WEALTH MANAGEMENT LIMITED
8th Floor, Wing A, Building No 3 Inspire BKC, G Block,
Bandra Kurla Complex, Bandra East, Mumbai – 400 051
Phone: +91 22 4009 4400
Email: pfc.ncd@nuvama.com
Website: www.nuvama.com
SMC CAPITALS LIMITED
A-401/402, Lotus Corporate Park, Off Western Express Highway,
Jai Coach Signal, Goregaon (East), Mumbai – 400063, Maharashtra
Phone: +91 22 6648 1818
Email: mflncd2022@smccapitals.com
Website: www.smccapitals.com
TRUST INVESTMENT ADVISORS PRIVATE LIMITED
109/110, Balarama, Bandra Kurla Complex,
Bandra (East), Mumbai – 400 051, Maharashtra
Phone: +91 22 4084 5000
Email: projectsamridhi.Trust@trustgroup.in
Website: www.trustgroup.in
NCD Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower B Plot 31-32,
Gachibowli Financial District Nanakramguda Serilingampally,
Hyderabad Rangareddi – 500 032 Telangana, India
Phone: +91 40 6716 2222
Email: pfcl.ncdipo@kfintech. com
Website: www.kfintech.com
Company Contact Details
POWER FINANCE CORPORATION LIMITED
“Urjanidhi”, 1, Barakhamba Lane,
Connaught Place, New Delhi – 110 001
Phone: +91 11 2345 6000
Email: publicissue2324@pfcindia.com
Website: www.pfcindia.com
Final Thoughts
Non-Convertible Debentures (NCD) are a better investment option for those who are looking for a diversified portfolio. investing in Power Finance Corporation NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
