Power Finance Corporation to raise up to ₹5,000 crore via NCDs; PSU stock rises nearly 3%
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Power Finance Corporation (PFC) on Monday said it will tap the capital market to raise up to ₹5,000 crore through a public issue of secured, rated, listed, taxable and redeemable non-convertible debentures (NCDs). The capital proceed will be used for onward lending, financing or refinancing existing borrowings, debt servicing, as well as for general corporate purposes.
Reacting to the news, shares of Power Finance rose as much as 2.6% to ₹368.50 on the BSE, while its market capitalisation climbed to ₹1.21 lakh crore.
In a statement, state-owned company said it has filed the tranche I prospectus on January 9, 2026 for the issue. The tranche I NCD issue has a base size of ₹500 crore, along with a green shoe option of up to ₹4,500 crore, taking the total issue size to ₹5,000 crore, within the overall shelf limit of ₹10,000 crore.
As per the company, the tranche I issue will open on January 16, 2026, and close on January 30, 2026, with an option for early closure or extension, subject to regulatory approvals. The NCDs are proposed to be listed on the National Stock Exchange of India (NSE).
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The NCDs carry a face value of ₹1,000 each, except for zero coupon NCDs, which will have a face value of ₹1,00,000 each. The issue offers tenure options of 5 years, 10 years and 15 years, with annual coupon payments across select series. The coupon rate goes up to 7.30% per annum, while the effective yield for investors ranges between 6.85% and 7.30% per annum, depending on the category and series.
The debentures have received the highest credit ratings of “CARE AAA; Stable” from CARE Ratings, “CRISIL AAA/Stable” from CRISIL Ratings, and “[ICRA] AAA (Stable)” from ICRA, indicating a high degree of safety regarding timely servicing of financial obligations.
The minimum application size is ₹10,000 (10 NCDs) and thereafter in multiples of ₹1,000, except for the zero coupon NCD series, where the minimum application is one NCD.
PFC said that at least 75% of the net proceeds from the issue will be utilised towards onward lending, financing or refinancing existing borrowings, and debt servicing, while up to 25% will be used for general corporate purposes. Proceeds from the zero coupon NCDs will be used only for onward lending.
For the six months ended September 30, 2025, PFC reported consolidated revenue from operations of ₹57,429.28 crore and a net profit of ₹16,815.84 crore. For FY25, the company posted consolidated revenue of ₹1,06,501.62 crore and a net profit of ₹30,514.40 crore.
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