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
| Issuer | PFC Ltd |
|---|---|
| Type of Instrument | Secured, Redeemable, NCD having tax benefit u/s 10 (15) (iv) (h) |
| Issue Open | 5 Oct 2015 |
| Issue Close | 9 Oct 2015 (with option of early closure or extension) |
| Issue Size | 700 Cr. |
| Face Value | Rs. 1,000 |
| Min. Application Size | 5 Bonds (Rs.5000) & multiply of 1 Bond thereafter (across all series bonds) |
| Interest | Annually |
| Mode of Allotment | D'mat & Physical |
| Rating | AAA by CRISIL ICRA & CARE |
| Listing | Proposed on BSE & NSE |
| Interest on Application Money | On Allotment : same as coupon Rate On Refund : % P.A. |
| Referance | Prospect Page No 148 to 153 |
Issue Structure –
| Option | Option 1 | Option 2 | Option 3 | |||
|---|---|---|---|---|---|---|
| Tenor | 10 Yr | 15 Yr | 20 Yr | |||
| Coupon | Rate | |||||
| Category - I, II, III | Series 1A | 7.11% | Series 2A | 7.27% | Series 3A | 7.35% |
| Category - IV (Retail) | Series 1B | 7.36% | Series 2B | 7.52% | Series 3B | 7.60% |
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.
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[wptabtitle] Subscription[/wptabtitle] [wptabcontent]
| Cat 1 | Cat 2 | Cat 3 | Cat 4 | Total | ||
|---|---|---|---|---|---|---|
| Issue Size (Cr) | 70 | 175 | 175 | 280 | 700 | |
| 5 Oct | Subscribe (Cr.) | 1495.46 | 3105.73 | 1375.81 | 2005.92 | 7982.92 |
| No of Times | 21.36 | 17.75 | 7.86 | 7.16 | 11.40 | |
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[wptabtitle]Listing[/wptabtitle] [wptabcontent]
| Tax Free Bond 2015-16 | Power Finance Corporation Ltd |
|---|---|
| Issue Open | 5 Oct 2015 |
| Issue Close | 9 Oct 2015 (6 Oct early close ) |
| Issue Registrar | Big Share Service Private Ltd |
| Listing Exchange | Proposed BSE / NSE |
| Allotment Date | 17 Oct 2015 |
| Listing Date | 21 Oct 2015 |
| Interest Payment Date | 17 Oct each year till the date of maturity |
| Face Value | 1000 |
| Circular Ref. No | BSE- 20151020-23 |
| Series 1A | Series 1B | Series 2A | Series 2B | Series 3A | Series 3B | |
|---|---|---|---|---|---|---|
| Coupon | 7.11% | 7.36% | 7.27% | 7.52% | 7.35% | 7.60% |
| For Cat. I, II , III | For Cat. IV | For Cat. I, II , III | For Cat. IV | For Cat. I, II , III | For Cat. IV | |
| Period | 10 Years | 10 Years | 15 Years | 15 Years | 20 Years | 20 Years |
| ISIN No | INE 134E07539 | INE 134E07547 | INE 134E7554 | INE 134E07562 | INE 134E07570 | INE 134E07588 |
| BSE Script | 935504 | 935506 | 935508 | 935510 | 935512 | 935514 |
| NSE Script | ||||||
| Maturity | 17.10.2025 | 17.10.2025 | 17.10.2030 | 17.10.2030 | 17.10.2035 | 17.10.2035 |
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
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Application Form & Investment Call : Rajendra 800 775 0904
rajendra@puneinvest.com
Mobile 7719917444
