Power Finance Corporation Limited NCDs garners Rs 2389 crore on the first day of bidding

Power Finance Corporation Limited ("Company") is registered with the Reserve Bank of India (RBI) as a non-deposit taking systemically important Non-Banking Financial Company (NBFC), classified as an Infrastructure Finance Company (IFC) on July 28, 2010, with a belief that its NBFC and IFC classifications enables it to effectively capitalize on available financing opportunities in the Indian power sector, with a public issue of secured, rated, listed, redeemable, non-convertible debentures (NCDs) has been oversubscribed 4.78 times on the first day of the issue which garnered Rs 2388.79 crore with interest shown from all the category of investors, according to the data available on stock exchange.

In a disclosure filed with stock exchanges on Friday, July 21, 2023, Power Finance Corporation executed various MoUs of more than Rs 2.37 lakh crore with 20 companies both in public and private sector.

The Non-Institutional Category was the most subscribed with 10.23 times, followed by Institutional Category with 8.11 times. HNI Category was subscribed 5.69 times, whereas, Retail Category was subscribed 1.67 times. The Issue opens on July 21, 2023 and closes on July 28, 2023 with an option of early closure.

The HNI category collected Rs 1,139 Crore, while Non-Institutional, Institutional and Retail category garnered Rs 511.31 crore, Rs 405.27 crore and Rs 333.37 crore respectively.

The issue has maturity / tenure options of 3 years, 10 years and 15 years for NCDs with annual coupon payment being offered across series I, II, and III, respectively. 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) holders ranges from 7.44% to 7.54%. Interest payments modes are Annual. Amount on maturity for NCD holders in Category I, II, and III is Rs 1000/-.

The NCDs have been rated by CARE AAA/Stable by CARE Ratings Limited, CRISIL AAA/Stable by CRISIL Limited and ICRA AAA (Stable) by ICRA Limited.

Out of the net proceeds of the Tranche I Issue, at least 75% shall be utilised 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 a maximum up to 25% will be utilised for general corporate purposes.

JM Financial Limited, A.K.Capital Services Limited, Nuvama Wealth Management Limited, SMC Capitals Limited, and Trust Investment Advisors Private Limited are the lead managers to the Issue ("Lead Managers"). Beacon Trusteeship Limited is the Debenture Trustee to the Issue and KFin Technologies Limited is the Registrar to the Issue.

Shares of Power Finance Corporation Limited was last trading in BSE at Rs. 227.10 as compared to the previous close of Rs. 226.10. The total number of shares traded during the day was 149892 in over 2443 trades.

The stock hit an intraday high of Rs. 228.25 and intraday low of 224.60. The net turnover during the day was Rs. 34069506.00.

Source : Equity Bulls

Keywords

PowerFinanceCorporation INE134E01011 PFC NCDIssue FundRaising OverSubscription