PFC Limited NCD 2021 Tranche I
About PFC
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 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.
1. Largest NBFC by Networth (all reserves)
2. A specialized Financial Institution in Power Sector
3. A dominant player with around 20% market share
4. A lean and professionally-managed organization
5. A consistently profit-making and dividend-paying company
6. Strong asset quality reflected in low NPAs
7. Lowest Administrative cost in the industry
Issue Note
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”).
Objective of NCD PFC Limited NCD 2021 Tranche I:
The proceeds of the issue will be used for "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 our company).
At least 75 per cent of the proceeds would go towards onward lending and financing/refinancing of existing debt.
PFC Limited NCD 2021 Tranche I Details:
| Open Date: | Jan 15 2021 |
| Close Date: | Jan 19 2021 |
| Issue Size: | ₹ 5000 Cr. |
| Face Value: | ₹ 1000 Per NCD |
| Market Lot: | 10 NCD |
| Minimum Order Quantity: | 10000 NCD |
| Listing At: | BSE |
Promoters:
Government of India.
Financials:
| Particulars (in Crores) | Mar-15 | Mar-16 | Mar-17 | Mar-18 | Mar-19 | Mar-20 |
| Sales | 24,988 | 27,861 | 27,581 | 48,624 | 54,106 | 62,189 |
| Expenses | 1,103 | 2,042 | 5,538 | 6,583 | 1,696 | 7,332 |
| Operating Profit | 23,885 | 25,819 | 22,043 | 42,041 | 52,410 | 54,857 |
| OPM % | 96% | 93% | 80% | 86% | 97% | 88% |
| Other Income | 25 | 25 | 30 | 42 | 94 | 105 |
| Interest | 15,456 | 16,657 | 16,768 | 30,289 | 34,627 | 40,845 |
| Depreciation | 8 | 20 | 41 | 15 | 15 | 24 |
| Profit before tax | 8,446 | 9,167 | 5,264 | 11,779 | 17,862 | 14,093 |
| Tax % | 29% | 33% | 58% | 25% | 29% | 33% |
| Net Profit | 6,004 | 6,184 | 2,236 | 6,689 | 9,921 | 7,122 |
| EPS in Rs | 22.74 | 23.42 | 8.47 | 25.34 | 37.58 | 26.98 |
| Dividend Payout % | 20% | 30% | 59% | 31% | 0% | 35% |
Credit Rating:
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 ₹81,880 crores vide their letters dated December 28, 2020, December 28, 2020, and December24, 2020, 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.
Interest Rates:
| Tenure | 3 Years | 5 Years | 10 Years | 10 Years | 10 Years | 15 Years | 15 Years |
| Nature | Secured | ||||||
| Series | I | II | III | IV | V | VI | VII |
| Frequency of Interest Payment | Annual | Annual | Quarterly | Annual | Annual | Quarterly | Annual |
| Minimum Application | 10 NCDs | ||||||
| In multiples, of | 1 NCD after the minimum application | ||||||
| Face Value of NCDs (₹/NCD) | ₹ 1,000 | ||||||
| Issue Price (₹/NCD) | ₹ 1,000 | ||||||
| Coupon for Category I and II | 4.65% | 5.65% | 6.63% | 6.80% | 10Yr G-Sec + 55 BPS | 6.78% | 6.95% |
| Coupon for Category III and IV | 4.80% | 5.80% | 6.82% | 7.00% | 10Yr G-Sec + 80 BPS | 6.97% | 7.15% |
| Redemption Amount (Rs/NCD) | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
| Redemption Date | 3 Years | 5 Years | 10 Years | 10 Years | 10 Years | 15 Years | 15 Years |
| Effective Yield Category I and II | 4.65% | 5.65% | 6.79% | 6.80% | NA | 6.95% | 6.95% |
| Effective Yield Category III and IV | 4.80% | 5.80% | 6.99% | 7.00% | NA | 7.15% | 7.15% |
Post Tax returns:
(i) Sold after Maturity The interest earned through NCDs will be added to the total income and will be taxed depending upon the income slab of an Individual.
(ii) Sold Before Maturity If you decide to sell the NCDs on the stock exchange, capital gains can also arise. If NCDs are sold within a period of 12 months from the date of allotment, short term capital gains/loss (STCG) will arise and if you decide to sell NCDs after a period of 12 months, the resulting gain or loss is called long term capital gains/loss (LTCG).
Recommendation:
Review and Recommendation of PFC NCD 2021 Tranche 1 by InvestorZone team => 6/10
1-5: Fair
5-7: Good
7-10: Excellent
Lead Manager of PFC Limited NCD 2021 Tranche I:
- A. K. Capital Services Limited
- Edelweiss Capital Limited
- JM Financial Consultants Private Limited
- Trust Investment Advisors Private Limited
Registrar of PFC Limited NCD 2021 Tranche I:
- Kfin Technology Private Limited
Discussion on PFC Limited NCD 2021 Tranche I:
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Which is the best online platform from where one can apply all NCDs an corporate FDs completely digitally
Dear All,
POWER FINANCE CORPORATION LIMITED *(PFC)* NCD January 2021 will be listing on BSE on 27th Jan 2021.
Below is the BSE circular link.
https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20210125-22
Team EdelweissPartners
https://karisma.kfintech.com/allotmentadvice.aspx
Issue closed.
PFC Rs 5K cr bonds issue over-subscribed, closed 11 days ahead of schedule.
The first tranche of Rs 5,000 crore, including Rs 4,500 crore green-shoe option, opened for subscription on Friday (January 15) and was scheduled to close on January 29. But the issue had to be closed on Monday, the second day of trading, due to over-subscription on BSE.
According to the BSE data, subscribers applied for 4,47,76,348 bonds or NCDs of Rs 1,000 each against 50 lakh bonds on the offer (with 4.5 crore NCDs under green-shoe option) on the offer.
Thus, the PFC received subscription worth Rs 4,477.63 crore against Rs 500 crore base issue size of NCDs on offer (with green-shoe option of Rs 4,500 crore).
The overwhelming response to the bond issue is expected to encourage the firm to come out with the second bond issue of Rs 5,000 crore during the current financial year, a source said.
Please remember allotment will be on first come first serve basis.
To check live bid details, click the below link.
https://www.bseindia.com/markets/publicIssues/DisplayIPO.aspx?id=2227&type=DPI&idtype=1&status=L&IPONo=5316&startdt=15/01/2021
The PFC NCD will be listed on BSE.
Power Finance Corporation Limited (PFC) Public Issue of Secured Redeemable NCD*
Issue Opens On: 15-Jan-2021
Issued Closes On: 29-Jan-2021
Allotment 1st come 1st serve basis.
Rating: AAA Stable by CARE, CRISIL & ICRA
Lead Manager: Edelweiss & Others
Issue Size: *Rs. 5000 Crores* (Base Issue Rs. 500 Crs + Green Shoes Rs. 4500 Crs)
*Allocation:*
Institutional 10% – Rs. 500 Crs
Corporate 10% – Rs. 500 Crs
HNI 40% – Rs. 2000 Crs
Retail 40% – Rs. 2000 Crs
*Coupon For Institutional & Corporates:*
3 Years: *4.65% p.a. Annual Payout*
5 Years: *5.65% p.a. Annual Payout*
10 Years: *6.63% p.a. Quarterly Payout*
10 Years: *6.80% p.a. Annual Payout*
10 Years *(Floating)*: Benchmark FIMMDA 10Yr G-Sec (Annualised)+ 55 BPS
15 Years: *6.78% p.a. Quarterly Payout*
15 Years: *6.95% p.a. Annual Payout*
*Coupon for HNI & Retail:*
3 Years: *4.80% p.a. Annual Payout*
5 Years: *5.80% p.a. Annual Payout*
10 Years: *6.82% p.a. Quarterly Payout*
10 Years: *7.00% p.a. Annual Payout*
10 Years *(Floating)*: Benchmark FIMMDA 10Yr G-Sec (Annualised)+ 80 BPS
15 Years: *6.97% p.a. Quarterly Payout*
15 Years: *7.15% p.a. Annual Payout*
Power Finance Corporation Limited Bond issue is expected to launch its public issue any time by 15th January 2021.
As per new SEBI circular investors can apply in Debt public issues thru UPI mechanism for an amount not exceeding ₹2 Lakhs….
PFC bond first cum first basis.
Expected NCD size of 10000 Crores and likely to open on 3rd week of Jan 2021.