Power Finance Company (PFC) launched public Issue of Tax Free Bond Issue

Issue Early closer – 6 Oct 2015  Listing Date -21 Oct 2015

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[wptabtitle] Product Note[/wptabtitle] [wptabcontent]Issue Highlight –Tranche 1 

IssuerPFC Ltd
Type of InstrumentSecured, Redeemable, NCD having tax benefit u/s 10 (15) (iv) (h)
Issue Open5 Oct 2015
Issue Close9 Oct 2015 (with option of early closure or extension)
Issue Size700 Cr.
Face ValueRs. 1,000
Min. Application Size5 Bonds (Rs.5000) & multiply of 1 Bond thereafter (across all series bonds)
Mode of AllotmentD'mat & Physical
ListingProposed on BSE & NSE
Interest on Application MoneyOn Allotment : same as coupon Rate On Refund : % P.A.
ReferanceProspect Page No 148 to 153

Issue Structure –

OptionOption 1Option 2Option 3
Tenor10 Yr15 Yr20 Yr
Category - I, II, IIISeries 1A7.11%Series 2A7.27%Series 3A7.35%
Category - IV (Retail)Series 1B7.36%Series 2B7.52%Series 3B7.60%

Cheque Details-  

Retail Investor                  : ”  “


NRI  Investor 

Repatriation basis       :  ” “

Non Repatriation basis: ”  “

 Note :   Application will be rejected if banked without uploading in the electronic system of the recognized stock exchange. (Bidding process)

Bankers :  [/wptabcontent]

[wptabtitle] About Issue[/wptabtitle] [wptabcontent]About the Issuer

  • Conferred with Mini Ratna ( Category – I ) status in 1998 and notified as a Navratna company by the Govt. of India in 2007.
  • Listed government company and public financial institution providing comprehensive range of financial products and related advisory services from project conceptualization to post-commissioning stage for clients in the power sector
  • Registered with RBI as a non-deposit taking systemically important NBFC classified as an IFC in July 2010
  • PFC is an integral part of, and continues to play a strategic role in, GoI’s initiatives for development of power sector in India.

 Business Activities

  • Comprehensive range of financial products to clients in power sector :
    • Fund-based financial products including long-term project finance short-term loans, buyer’s line of credit and debt refinancing schemes.
    • Non-fund based assistance including default payment guarantees and letters of comforts
  • Fee-based technical advisory and consultancy services for power sector projects

Financial Performance

  • Total loan assets increased from 1,60,366.60 Cr. As on Mar 31., 2013
  • Total ncome  4419.60 Cr as on 31 Mar., 2013
  • Profit after Tax 4419.60 Cr. As on 31 Mar., 2013
  • Gross NPAs  1134.52 Cr. As on 31 Mar., 2013
  • Net worth as of March 31, 2013 was 22,351.41 Cr. (0.71% of total loan assets)
  • Capital adequacy ratio  17.98 % as on Mar 31 2013

 Benefit to Investor

  • The Income by way of Interest on these Bonds is fully exempt from Income Tax as per provision under section 10(15) (iv) (h) of IT act. ( Tax Free Bond Interest  not part of Total Income)
  • No deduction of TDS from the interest
  • No upper limit on investment amount
  • No lock in period for the Bonds
  • The Bonds shall be listed and can be traded on BSE
  • Capital Gain Benefit – capital gain arising on the transfer of listed bonds shall be taxed @ 10% without Indexation or @20% with Indexation.


[wptabtitle] Subscription[/wptabtitle] [wptabcontent]

Cat 1Cat 2Cat 3Cat 4Total
Issue Size (Cr)70175175280700
5 OctSubscribe (Cr.)1495.463105.731375.812005.927982.92
No of Times21.3617.757.867.1611.40


[wptabtitle]Listing[/wptabtitle] [wptabcontent]

Tax Free Bond 2015-16Power Finance Corporation Ltd
Issue Open5 Oct 2015
Issue Close9 Oct 2015 (6 Oct early close )
Issue RegistrarBig Share Service Private Ltd
Listing ExchangeProposed BSE / NSE
Allotment Date17 Oct 2015
Listing Date21 Oct 2015
Interest Payment Date17 Oct each year till the date of maturity
Face Value1000
Circular Ref. NoBSE- 20151020-23
Series 1ASeries 1BSeries 2ASeries 2BSeries 3ASeries 3B
For Cat. I, II , IIIFor Cat. IVFor Cat. I, II , IIIFor Cat. IVFor Cat. I, II , IIIFor Cat. IV
Period10 Years10 Years15 Years15 Years20 Years20 Years
ISIN NoINE 134E07539INE 134E07547INE 134E7554INE 134E07562INE 134E07570INE 134E07588
BSE Script935504935506935508935510935512935514
NSE Script

Listing Date :     21 Oct 2015  

Allotment Date :   17 Oct 2015


Registrar of Issue :      Bigshare Services Pvt Ltd

Allotment link               After issue closed updated

Trustee for Bondholders :  Milestone Trustship Service Pvt Ltd

 Depositories :  NSDL & CDSL



Application Form & Investment Call : Rajendra 800 775 0904

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