Kolkata, January 15, 2026:
Power Finance Corporation Limited (PFC), a Government of India–owned Maharatna CPSE and a leading financial institution in the power sector, has announced plans to raise up to ₹5,000 crore through the public issue of secured, rated, listed, redeemable non-convertible debentures (NCDs).
The proposed Tranche I Issue comprises a base issue size of ₹500 crore with a green shoe option of ₹4,500 crore, aggregating up to ₹5,000 crore, within the company’s overall shelf limit of ₹10,000 crore. The issue opens for subscription on Friday, January 16, 2026, and closes on Friday, January 30, 2026, with an option for early closure or extension.
Attractive Yields and Multiple Tenors
The secured NCDs are being offered across five series with tenors of 5 years, 10 years, 10 years 1 month (zero-coupon), and 15 years, catering to diverse investor preferences. The instruments offer annual coupon rates of up to 7.30% per annum, with effective yields ranging between 6.80% and 7.30%, depending on the category and series.
The highest coupon of 7.30% per annum is available to Category IV investors for the 15-year tenor, payable annually. A zero-coupon NCD option is also available, issued at a discount and redeemable at maturity.
Investment Details
- Face Value: ₹1,000 per NCD (₹1,00,000 for zero-coupon series)
- Minimum Application Size: ₹10,000 (10 NCDs), except for zero-coupon series
- Interest Payment: Annual (except zero-coupon series)
- Nature of Instrument: Secured
- Listing: National Stock Exchange of India Limited (NSE)
Use of Proceeds
At least 75% of the net proceeds from the Tranche I Issue will be utilised for onward lending, financing/refinancing existing debt, and debt servicing, while up to 25% may be used for general corporate purposes. Funds raised through zero-coupon NCDs will be exclusively deployed for onward lending.
Strong Credit Profile
The NCDs have received top-tier credit ratings, underscoring PFC’s robust financial position:
- CARE AAA (Stable) by CARE Ratings
- CRISIL AAA/Stable by CRISIL Ratings
- ICRA AAA (Stable) by ICRA
Financial Performance
PFC reported consolidated revenues of ₹57,429.28 crore and a net profit of ₹16,815.84 crore for the six months ended September 30, 2025. For FY25, consolidated revenue stood at ₹1,06,501.62 crore, with a net profit of ₹30,514.40 crore, reflecting sustained profitability and balance sheet strength.
Issue Management
The issue is being managed by Tipsons Consultancy Services, A.K. Capital Services, Nuvama Wealth Management, and Trust Investment Advisors as Lead Managers. Beacon Trusteeship Limited is the Debenture Trustee, while KFin Technologies Limited is the Registrar to the Issue.
