Key Highlights
- Public issue of secured, rated, listed, taxable, redeemable NCDs (face value ₹1,000; ₹1,00,000 for zero-coupon NCDs)
- Issue size: ₹500 crore base, with green shoe option up to ₹4,500 crore (total up to ₹5,000 crore) under ₹10,000 crore shelf limit
- Credit ratings: CARE AAA (Stable), CRISIL AAA (Stable), ICRA AAA (Stable)
- Coupon rate: Up to 7.30% p.a., depending on category and tenor
- Issue period: January 16–30, 2026 (with early closure/extension option)
- Proposed listing on NSE, the designated stock exchange
Power Finance Corporation Limited (PFC), a Schedule-A Maharatna Central Public Sector Enterprise and a key financial institution supporting India’s power sector, has announced plans to tap the Indian capital market by raising up to ₹5,000 crore through a public issue of secured, rated, listed non-convertible debentures (NCDs). The state-owned financier has filed its Tranche I prospectus dated January 9, 2026, outlining a base issue size of ₹500 crore, with a green shoe option of up to ₹4,500 crore, taking the total issue size to ₹5,000 crore. The proposed issue forms part of PFC’s larger ₹10,000 crore shelf limit and reinforces the company’s ongoing efforts to strengthen long-term funding for infrastructure and power sector financing in India.
The Tranche I Issue opens on Friday, January 16, 2026, and closes on Friday, January 30, 2026 with an option of early closure or extension in compliance with Securities and Exchange Board of India Issue and listing of (Non-Convertible Securities) Regulations 2021, as amended (“SEBI NCS Regulations”). The NCDs are proposed to be listed on National Stock Exchange of India Limited (“NSE”), with NSE being the Designated Stock Exchange for the Issue. The NCDs have been rated by “CARE AAA; Stable” by CARE Ratings Limited, “Crisil AAA/Stable” by Crisil Ratings Limited and “[ICRA] AAA (Stable)” by ICRA Limited.
The minimum application size would be Rs. 10,000 (i.e. 10 NCDs) and thereafter in multiples of Rs. 1,000 (i.e. 1 NCD) thereof (except in case of Series III NCDs (zero coupon NCD), the minimum application shall be 1 NCD and in multiple of 1 NCD thereafter. (For Series III NCDs, the minimum application amount shall be ₹ 51,502 for Category I and II; ₹ 51,263 for Category III and ₹ 50,780 for Category IV). This issue has maturity / tenure options of 5 years, 10 years and 15 years for NCDs with annual coupon payment being offered across series I, II, and IV, respectively. Effective yield for NCD holders in various categories ranges from 6.85% to 7.30% per annum.
Out of the net proceeds of the Tranche I Issue, at least 75% shall be utilised for the purpose of 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 the Company) and a maximum up to 25% will be utilised for general corporate purposes. The funds raised form the issuance of zero coupon NCDs shall be utilised towards only the purpose of onward lending and shall not be used for any other purpose.
The Company’s consolidated revenues from operations were Rs. 57,429.28 crore for the six months ended September 30, 2025 and its net profit was Rs. 16,815.84 crore.
For FY25, its consolidated revenue from operations were Rs. 106,501.62 crore and its net profit was Rs. 30,514.40 crore
Tipsons Consultancy Services, A. K. Capital Services Limited, Nuvama Wealth Management Limited and Trust Investment Advisors Private Limited are the lead managers to the Issue (“Lead Managers”). Beacon Trusteeship Limited is the Debenture Trustee to the Issue and KFin Technologies Limited is the Registrar to the Issue.
