Power Finance Corporation Limited launched a NCD (non-convertible debenture) issue, offering yields up to 7.15% for a fifteen-year tenor, on Thursday. You can opt for monthly, annual, or cumulative interest payment options.
The issue which opened on 15th January 2021 will remain open till 29th January 2021. The NCD is being offered in tenors ranging from 36 months to 180 months and is rated CARE AAA; Stable by CARE
CRISIL AAA / Stable’ by CRISIL
[ICRA]AAA(Stable) by ICRA
. The issue size is ₹Rs. 500 Crore (“Base Issue Size”) with an option to
retain oversubscription up to Rs. 4,500 Crores aggregating up to Rs. 5,000 Crores (“Tranche I Issue Limit”)
(“The Tranche I Issue”) which is within the Shelf Limit of Rs. 10,000 Crores (“Shelf Limit”).
Power Finance Corporation Limited NCD January 2021 Detail
| Security name: | Power Finance Corporation Limited |
| Security symbol: | PFCNCD0121 |
| Issue size: | The Company is proposing a Public Issue of Secured Redeemable Non- Convertible Debentures of Face. Value of Rs. 1,000 each (“NCDs”), for an amount of Rs. 500 Crore (“Base Issue Size”) with an option to retain oversubscription up to Rs. 4,500 Crores aggregating up to Rs. 5,000 Crores (“Tranche I Issue Limit”) retain oversubscription up to Rs. 4,500 Crores aggregating up to Rs. 5,000 Crores (“Tranche I Issue Limit”) retain oversubscription up to Rs. 4,500 Crores aggregating up to Rs. 5,000 Crores (“Tranche I Issue Limit”) (“The Tranche I Issue”) which is within the Shelf Limit of Rs. 10,000 Crores (“Shelf Limit”) |
| Issue Price: | Rs. 1,000 each NCD |
| Face Value: Rs. 1,000 each NCD | Rs. 1,000 each NCD |
| Minimum Lot size: | 1 (one) NCD |
| Market Lot: | 1 (one) NCD |
| Minimum Application Size: | Rs. 10,000 (10 NCDs) (for all Series of NCDs, namely Series I, Series II, Series III, Series IV, Series V, Series VI and Series VII) |
| In Multiples of: | 1 (one) NCD (Rs. 1,000) across all options of NCDs |
| Credit Rating: | The NCDs have been rated CARE AAA; Stable by CARE CRISIL AAA / Stable’ by CRISIL [ICRA]AAA(Stable) by ICRA |
| Rating agency: | CARE Ratings Limited, CRISIL Limited (formerly known as Credit Rating Information Services of India Limited) & ICRA Limited |
| Mode of Allotment and Trading | Only in Demat form |
Power Finance Corporation Limited NCD Allocation Ratio
| Category | NCD's Allocated |
|---|---|
| Category 1 (QIB) | 0% |
| Category 2 (NII) | 0% |
| Category 3 (HNI) | 0% |
| Category 4 (RII) | 0% |
Power Finance Corporation Limited NCD Coupon Rates for Eash Series
| Series | I | II | III | IV* | V | VI | Vii |
|---|---|---|---|---|---|---|---|
| Interest type | Fixed | Fixed | Fixed | Fixed | Floating # | Fixed | Fixed |
| Frequency of Interest Payment | Annual | Annual | Quarterly | Annual | Annual | Quarterly | Annual |
| Tenor | 3 Years | 5 Years | 10 Years | 10 Years | 10 Years | 15 Years | 15 Years |
Coupon (per cent.) for Category I & II |
4.65% | 5.65% | 6.63% | 6.80% | Benchmark FIMMDA 10Yr GSec (Annualised)+ 55 BPS |
6.78% | 6.95% |
Coupon (per cent.) for Category III & IV |
4.80% | 5.80% | 6.82% | 7.00% | Benchmark FIMMDA 10Yr GSec (Annualised)+ 80 BPS |
6.97% | 7.15% |
Effective Yield (per cent. per annum) for Category I & II |
4.65% | 5.65% | 6.79% | 6.80% | - | 6.95% | 6.95% |
Effective Yield (per cent. per annum) for Category III & IV |
4.80% | 5.80% | 6.99% | 7.00% | - | 7.15% | 7.15% |
| Put and Call Options | Not Applicable. | ||||||
| Redemption amount (Rs. per NCD) | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 |
Redemption Date (from the Deemed Date of Allotment) |
3 Years | 5 Years | 10 Years | 10 Years | 10 Years | 15 Years | 15 Years |
Power Finance Corporation Limited NCD Rating Detail
The NCDs proposed to be issued under the Issue have been rated ‘CARE AAA; Stable’ by CARE Ratings Limited (“CARE”); ‘CRISIL AAA / Stable’ by CRISIL Limited (“CRISIL”); and ‘[ICRA]AAA(Stable)’ by
ICRA Limited (“ICRA”),for an amount of up to ₹ 98,000 crore vide their letters dated January 07, 2021, January 08, 2021 and January 06, 2021, respectively. Instruments with these ratings are considered to have the
highest degree of safety regarding timely servicing of financial obligations and such instruments carry lowest credit risk. The ratings provided by CARE, ICRA and CRISIL may be suspended, withdrawn or revised at any
time by the assigning rating agency and should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold the NCDs and investors should take their own decisions. For
further details, please see Annexure A for the rating letters and the rationale for the above ratings.
About Power Finance Corporation Limited
Incorporated on July 16th, 1986, Power Finance Corporation Ltd. is a Schedule-A Navratna CPSE, and is a leading Non-Banking Financial Corporation in the Country. PFC's registered office is located at New Delhi and regional offices are located at Mumbai and Chennai.
PFC is under the administrative control of the Ministry of Power. PFC was conferred the title of a 'Navratna CPSE' in June,2007, and was classified as an Infrastructure Finance Company by the RBI on 28th July,2010.
PFC plays a crucial role in the rise of India as a global player. Increasingly, a country's development is gauged by measuring its energy usage. With a large fraction of our nation still, unfortunately, without any access to electricity, PFC will become an increasingly important factor in the years to come.
Our shareholders and clients place their full faith in our ability to deliver unbeatable results. Despite the hardships played by the power and financial sectors, PFC continues to maintain a healthy loan book, as well as low levels of NPAs. This is thanks to PFC's robust evaluation and appraisal processes.
Key Strengths
- Largest NBFC by Networth (all reserves)
- A specialized Financial Institution in Power Sector
- A dominant player with around 20% market share
- A lean and professionally-managed organization
- Designated as a "Nodal Agency" for development of Integrated Power Development Scheme(IPDS), Ultra Mega Power Projects (UMPPs) and "Bid Process Coordinator" for Independent Transmission Projects (ITPs)
- ISO 9001:2015 certified
- A consistently profit-making and dividend-paying company
- Strong asset quality reflected in low NPAs
- Lowest Administrative cost in the industry
- Consultancy & Advisory services in strategic, financial, regulatory and capacity building skills under one umbrella
Company Promoters
- President Of India
Company Financials
Summary of financial Information (Restated Consolidated)
| Parameter | MAR 20 | MAR 19 | YoY %Change |
|---|---|---|---|
| Net Sales | 62189.44 | 54105.65 | 14.94 |
| Total Expenditure | 7335.04 | 1696.76 | 332.30 |
| PBIDT (Excl OI) | 54854.40 | 52408.89 | 4.67 |
| Other Income | 85.92 | 51.18 | 67.88 |
| Operating Profit | 54940.32 | 52460.07 | 4.73 |
| Interest | 40844.65 | 34626.80 | 17.96 |
| Exceptional Items | NA | NA | NA |
| PBDT | 14095.67 | 17833.27 | -20.96 |
| Depreciation | 24.43 | 15.49 | 57.71 |
| Profit Before Tax | 14071.24 | 17817.78 | -21.03 |
| Tax | 4615.42 | 5221.76 | -11.61 |
| Provisions and contingencies | NA | NA | NA |
| Profit After Tax | 9455.82 | 12596.02 | -24.93 |
| Extraordinary Items | NA | NA | NA |
| Prior Period Expenses | NA | NA | NA |
| Other Adjustments | NA | NA | NA |
| Net Profit | 9455.82 | 12596.02 | -24.93 |
| Minority Interest | -2355.12 | -2719.41 | 13.40 |
| Shares of Associates | 21.43 | 44.25 | -51.57 |
| Other related items | NA | NA | NA |
| Misc. Expenses Written off | NA | NA | NA |
| Consolidated Net Profit | 7122.13 | 9920.86 | -28.21 |
| Equity Capital | 2640.08 | 2640.08 | 0.00 |
| Face Value (IN RS) | 10.00 | 10.00 | 0.00 |
| Reserves | 46759.72 | 44481.17 | 5.12 |
| Calculated EPS | 26.98 | 37.58 | -28.21 |
| Calculated EPS (Annualised) | 26.98 | 37.58 | -28.21 |
| No of Public Share Holdings | 1161789630.00 | 1081191991.00 | 7.45 |
| % of Public Share Holdings | 44.01 | 40.95 | 7.47 |
| NA | NA | NA | NA |
| PBIDTM% (Excl OI) | 88.21 | 96.86 | -8.94 |
| PBIDTM% | 88.34 | 96.96 | -8.89 |
| PBDTM% | 22.67 | 32.96 | -31.23 |
| PBTM% | 22.63 | 32.93 | -31.29 |
| PATM% | 15.20 | 23.28 | -34.69 |
Objects of the Issue:
The following objects are proposed to be financed from the Net Proceeds:
1. Working capital purposes
2. General corporate purposes
Power Finance Corporation Limited NCD January 2021 Prospectus
Company Contact Information
Power Finance Corporation Ltd.
'Urjanidhi',
1, Barakhamba Lane, Connaught Place
New Delhi-110 001
Phone No.91-11-23456000
Power Finance Corporation Limited NCD January 2021 Registrar
KFin Technologies Private Limited,Selenium Tower-B, Plot 31 & 32, GachibowliFinancial District,Nanakramguda, SerilingampallyEmail: einward.ris@kfintech.com
Hyderabad 500 032, Telangana, India,Phone: +91 40 6716 2222
Investor grievance:info@kfintech.
Website: www.kfintech.com
Power Finance Corporation Limited NCD FAQs
When is Power Finance Corporation Limited NCD January 2021 public issue coming?
The Power Finance Corporation Limited NCD January 2021 issue opens on Jan 15, 2021, and closes on Jan 29, 2021, for the subscription.Note that the public issue of NCD is closed early in case it is fully subscribed (base + shelf) before its issue closing day.The allotment is done on a First Come First Serve Basis.
What is Power Finance Corporation Limited NCD January 2021 timetable?
Power Finance Corporation Limited NCD IPO dates are as below:Power Finance Corporation Limited NCD January 2021 Issue Timetable
Bid/Offer Opens On Jan 15, 2021 Bid/Offer Closes On Jan 2o, 2021 Record Date Deemed Date of Allotment Where can I get the Power Finance Corporation Limited NCD January 2021 issue prospectus pdf?
Power Finance Corporation Limited NCD January 2021 DRHP PDF Document is available.What is Power Finance Corporation Limited NCD January 2021 price? Tell me the pricing of Power Finance Corporation Limited NCD issue?
Power Finance Corporation Limited NCD January 2021 price is set at ₹1000 per NCD.What is the face value of Power Finance Corporation Limited NCD January 2021?
The NCD's will be issued at a face value of ₹1000 each NCD.What is the frequency of interest payment for Power Finance Corporation Limited NCD January 2021?
The frequency of payment for Power Finance Corporation Limited NCD January 2021 is Monthly, Yearly or Cumulative.What is the minimum application size for investment in Power Finance Corporation Limited NCD January 2021 public issue?
Each application should be for a minimum of 10 NCD's and multiples of 10 NCD thereof.What is Power Finance Corporation Limited NCD January 2021 closing time?
Power Finance Corporation Limited NCD January 2021 remain open for subscription on working days from 10:00 a.m. to 5:00 p.m until Jan 29, 2021. The bid may close earlier in case it is fully subscribed.
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