Power Finance Corporation is preparing a secured NCD to open for application on July 21, 2023. Interest rates are as high as 7.55%. NCD contract terms are 3, 10 and 15 years. These bonds also have excellent credit ratings.should i invest Power Finance Co., Ltd. NCD July 2023 issueWhat are the risk factors to consider before investing in such PFC NCD 2023?
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About Power Finance Co., Ltd.
Power Finance Corporation is a public corporation that is a financial institution specializing in the power sector. Boasting a market share of 20%, it has been designated as a joint organization for the development of comprehensive power development schemes and ultra-mega power projects.
Power Finance Corporation NCD July 2023 – Issue Details
PFC has issued INR 500 crore worth of Collateral Redeemable Non-Convertible Debentures (NCDs) for July 2023 issuance with an option to retain an additional INR 450 billion over the over-subscription, for a total of INR 500 billion. As for the length of the contract he has three options for him 3 years, 10 years and 15 years.
| opening date | July 21, 2023 |
| Closing date | July 28, 2023 |
| Security type | Safe, Redeemable and Non-Redeemable NCDs |
| issue size (base) | 500 million rupees |
| Option to retain oversubscription | 450 billion rupees |
| issue price | 1,000 rupees per security deposit |
| face value | 1,000 rupees per security deposit |
| Minimum lot size | 10 bonds and then 1 bond |
| tenure | 3 years, 10 years, 15 years |
| Interest payment frequency | every year |
| listing | Within 6 business days for BSE |
What is the PFC NCD July 2023 Credit Rating?
These NCD bonds are rated AAA: Stable by CARE/Crisil/ICRA, indicating that products with this rating have a high degree of security with respect to the timely repayment of financial obligations and are considered to have low credit risk.
What is the PFC NCD Interest Rate?
| series | I | Ⅱ | Ⅲ |
|---|---|---|---|
| Interest payment frequency | a year | a year | a year |
| tenure | 3 years | 10 yearss | 15 years |
| Coupon (%/Year) – Categories I and II | 7.45% | 7.47% | 7.50% |
| Coupon (%/Year) – Categories IIII and IV | 7.50% | 7.53% | 7.55% |
| Effective Yield (%/Year) – Categories I and II | 7.44% | 7.46% | 7.49% |
| Effective Yield (%/Year) – Categories IIII and IV | 7.49% | 7.52% | 7.54% |
| Amount at maturity (Rs.) | 1,000 | 1,000 | 1,000 |
How is the company’s financial situation?
Click here for consolidated results.
1) Revenue increased from Rs 5,410.5 billion in FY2019 to Rs 7,756.8 billion in FY2023.
2) Profit increased from Rs 1,259.6 billion in FY2019 to Rs 2,117.8 billion in FY2023.
Power Finance Co., Ltd. Non-convertible bond manager
AK Capital Services Limited
603, 6th Floor, Windsor Off CST Road, Kalina Santacruz (East), Mumbai – 400 098 Maharashtra – Phone: +91 22 6754 6500;
Email: pfc.ncd2023@akgroup.co.in
Website: investor.grievance@akgroup.co.in
Power Finance Corporation Non-Convertible Bond Registry
KFIN Technologies Co., Ltd.
Selenium Tower B Plot 31-32, Gachibowli Financial District Nanakramguda Serilingampally, Hyderabad Rangareddi – 500 032 Telangana, India
Phone: +91 40 6716 2222; Email: pfcl.ncdipo@kfintech.com
Website: www.kfintech.com
Power Finance Co., Ltd. contact details
Power Finance Co., Ltd.
“Urjanidhi”, 1, Barakhamba Lane, Connaught Place, New Delhi – 110 001
Phone: +91 11 2345 6000; Email: publicissue2324@pfcindia.com
Website: www.pfcindia.com
Why invest in PFC NCD in July 2023
1) The company is a leading public sector power finance company in India.
2) Attractive interest rates up to 7.55%.
3) Issuing a secure NCD that is safe compared to other non-secure NCDs.
4) PFC NCD Bonds have a good credit rating of AAA Stable from CARE/ICRA/Crisil.
Interested in investing in PFC NCD Jul-2023?
1) Has issued 10-15 year long-term NCD bonds. Investors may regret it if interest rates rise in the near future.
2) These NCD bond rates are in line with other banks’ FD rates and are not very attractive. Therefore, investors would be in no rush to invest in such NCD bonds.
3) See all risk factors in the NCD prospectus.
Power Finance Corporation NCD July 2023 FAQ
1) What is the face value of PFC NCD Jul2023?
The face value of these NCDs is Rs 1,000 per bond. An investor applies for a minimum of 10 bonds, after which he must apply for 1 bond.
2) What is the frequency of interest paid in PFC NCD July 2023?
Interest on these NCDs is paid annually.
3) Can these NCD bonds be redeemed from PFC prior to maturity?
No, these NCD bonds cannot be redeemed directly with the PFC prior to maturity. However, these bonds can be sold on the stock exchange. Prices can go lower or higher depending on demand for these bonds.
4) Is it safe to invest in PFC NCD 2023?
PFC is a Mahatna Company, owned and controlled by the Ministry of Power, Government of India. Therefore, bonds issued by PFC are safe for investment.
5) Can I buy these PFC NCD bonds on the stock exchange after listing?
yes. If you have a seller, you can also buy these bonds directly after listing. Bond prices also vary depending on the day’s on-demand bonds.
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Should I invest in Power Finance Corporation NCDs July 2023?
These PFC NCD bonds offer interest rates of up to 7.55% and also have excellent credit ratings. We issue 3-, 5- and 10-year bonds.
On the downside, the interest rates on these bonds are in line with the FD interest rates of other big banks, making them unattractive. Investors who invest in these bonds can exit by selling them on the stock exchange as they are listed bonds, but prices may be lower.
For smaller investors, investing in simple bank FDs offers easier liquidity and similar interest rates. However, if you are a large investor and want to secure your capital and make a large lump sum investment, you can invest in such bonds.
Suresh KP is the founder of Myinvestmentideas. He is his NISM Certified – Investment Advisor and he is a NISM Certified – Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
