Power Finance shares rise 2% as board approves fundraising via debentures

State-run Power Finance Corp (PFC) rose nearly 2% on Monday after the fim annouced the launch of Rs 5,000 crore secured Non-Convertible Debenture (NCD) issue. The issue will open on January 16 and close on January 30. 

PFC stock gained 2% to Rs 365.70 in early deals against the previous close of Rs 359.05. Market cap of the firm rose to Rs 1.20 lakh crore. PFC, which is a one of the leading lenders to the power sector, 

Minimum application ammount is Rs 10,000 (10 NCD) and in multiple of Rs 1,000 (1 NCD) thereafter. 

However, 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 Rs 51,502.00 for Category I and II; Rs 51,263.00 for Category III and Rs 50,780 for Category IV Investors)

"We hereby inform you that the Chairman & Managing Director on the recommendation of the Director (Finance) of our Company, considered and approved the public issue of secured, rated, listed, redeemable, non-convertible debentures of face value of Rs 1,000 each (except in case of Zero Coupon NCD, face value shall be Rs 1,00,000 each) (NCDs) for an amount up to Rs 500 crores (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), which is within the shelf limit of Rs 10,000 crores," said Power Finance Corp.