PFC shares climb post borrowing plan nod, dividend announcement

Shares of Power Finance Corporation Ltd (PFC) rose sharply in Wednesday's trade, climbing 4.09 per cent to hit a high of Rs 434.90 after the company approved its borrowing plan and a dividend payout.

The company said its board, at a meeting held on March 17, 2026, approved raising resources for the financial year 2026–27 (FY27) through bonds, term loans and commercial paper (CP), among other instruments, from domestic as well as international markets.

PFC added that it may borrow up to Rs 1.6 lakh crore in FY27, excluding funds raised under Extra Budgetary Resources (EBR), subject to shareholder-approved limits. The funds may be raised through various sources in one or more tranches or series.

In addition, the board declared a fourth interim dividend of Rs 3.25 per equity share (32.50 per cent) on the face value of Rs 10 each for FY26. The company has fixed March 23, 2026, as the record date to determine shareholder eligibility for the dividend payout.

Separately, the Union Budget 2026 proposed restructuring PFC and REC Ltd to enhance scale and efficiency among public sector non-banking financial companies (NBFCs). 

Mirae Asset Sharekhan said, "Proposed PFC-REC merger marks a shift in India's energy financing, consolidating a combined Rs 11.5 lakh crore loan-book to eliminate structural redundancies. By transitioning from a parent-subsidiary model to a unified entity, the government aims to catalyse the $700 billion investment required for India's 2035 renewable targets. The integration removes internal competition and creates a powerhouse capable of financing high-ticket, complex green energy projects. For PFC, the merger eliminates the holding company discount, while for REC, it offers superior capital access, collectively driving a potential market re-rating."