The BSE has now listed the Non-Convertible Debentures of Power Finance Corporation.

New Delhi: Power Finance Corporation Limited, a registered non-deposit-taking systemically important Non-Banking Financial Company (NBFC), recently issued secured, rated, listed, redeemable non-convertible debentures. The issue was listed on the Bombay Stock Exchange (BSE) and was oversubscribed 5.65 times, raising a remarkable sum of Rs 2,824.48 crore. The NCDs have a face value of Rs. 1,000 each, a base issue size of Rs. 500 crores, and a green shoe option of up to Rs. 4,500 crore, totaling Rs. 5,000 crore (Tranche I Issue) within the shelf limit of Rs. 10,000 crore (Issue).

The HNI Category had the highest subscriptions at 8.99 times, followed by the Non-Institutional Category at 3.58 times. The Institutional Category was subscribed 2.50 times, while the Retail Category was subscribed 2.09 times. The issue opened on Friday, July 21, 2023, and was scheduled to close on Friday, July 28, 2023. However, the issue closed prematurely on July 26, 2023.

Parminder Chopra, Director (Finance) and Additional Charge Chairman and Managing Director, expressed delight at the success of PFC’s second public issue of taxable bonds. The overwhelming participation of more than 80% of retail investors from across India is truly encouraging and demonstrates investors’ continued trust in PFC’s vision and robust fundamentals. PFC remains committed to its vision and is well-positioned to drive the growth of the power sector.

The HNI category collected Rs 1,797.61 Crore, while the Retail, Non-Institutional, and Institutional categories garnered Rs 418.48 crore, Rs 358.14 crore, and Rs 250.25 crore, respectively. This demonstrates the broad attractiveness of the issue to a wide range of investors, including high-net-worth individuals and institutional investors.

The NCDs offer maturity/tenure options of 3 years, 10 years, and 15 years for NCDs, with annual coupon payments being offered across series I, II, and III, respectively. This provides investors with a range of options to suit their investment goals and preferences. The effective yield (per annum) for NCD holders in Category I (Institutional Investors), Category II (Non-Institutional Investors), Category III (HNI Investors), and Category IV (Retail Individual Investors) ranges from 7.44% to 7.54%. Interest payments are made annually. The maturity amount for NCD holders in Category I, II, and III is Rs 1000/-.

It is worth noting that the NCDs have been rated CARE AAA/Stable by CARE Ratings Limited, CRISIL AAA/Stable by CRISIL Limited, and ICRA AAA (Stable) by ICRA Limited. These top credit ratings are a testament to the high quality and low risk of the investment opportunity offered by PFC.

Overall, the success of PFC’s public issue of taxable bonds is a positive sign for the power sector in India and a strong indicator of investors’ confidence in the company’s vision and fundamentals.