Power Finance Corporation Ltd
Power Finance Corporation Ltd (PFC)

Power Finance Corporation Ltd (PFC)

₹105.91.38%

Key Stats

₹103.2
Day's Price Range
₹106.1
₹97.1
52-Week Price Range
₹153.75
1 Month Return-7.49 %
3 Month Return-10.12 %
1 Year Return-14.36 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 1
1.96
EPS
Rank 4
₹53.08
BVPS
Rank 7
₹230.17
Dividend Yield
Rank 2
8.8%
ROE
Rank 5
17.3%
Price To Book Ratio
Rank 1
0.45
Debt To Asset
Rank 2
0.92

Company Information

Power Finance Corporation Ltd is a leading power sector public financial institution and a nonbanking financial company providing fund and nonfund based support for the development of the Indian power sector. The company is engaged in power sector financing and the integrated development of the power and associated sectors. They provide large range of Financial Products and Services like Project Term Loan Lease Financing Direct Discounting of Bills Short Term Loan and Consultancy Services etc for various Power projects in Generation Transmission and Distribution sector as well as for Renovation Modernization of existing power projects.The companys clients include state power utilities central power sector utilities power departments private power sector utilities including independent power producers joint sector power utilities power equipment manufacturers and power utilities run by local municipalities. These clients are involved in all aspects of the generation transmission and distribution and related activities in the power sector in India.Power Finance Corporation Ltd was incorporated on July 16 1986 as a public limited company. The GoI established the company as a financial institution in order to finance facilitate and promote power sector development in India with the President of India holding 100 of the equity share capital. In December 31 1987 they commenced their business operations. In the year 1988 they started lending activities. In the year 1990 the company was declared as a public financial institution.In the year 1991 the company was conferred with a license to deal in foreign exchange in the power sector. In the year 1992 Project on Energy Management Consultation and Training EMCAT became operational with the objective to bring about improvement in the efficiency of the energy supply component of the power sector with the help of USAID. In the year 1996 the company started funding private power projects.In the year 1998 the company was granted the Mini Ratna Category I status. They promoted a joint venture company namely PTC Ltd in association with NTPC and PGCIL. In the year 1999 the company launched consultancy services in order to provide consultancy services to both state owned and private power utilities for the power and financial sectors.In the year 2003 the company was appointed as a nodal agency by the MoP to fund the India Power Fund scheme to catalyze the process of fresh equity investment in the power sector. In the year 2005 the company entered into MoU with LIC and ten leading public sector banks for consortium financing of power projects. In the year 2006 the company incorporated seven subsidiary companies for developing UMPPs. They issued the letter of intent for the Sasan and Mundra UMPPs. In the year 2007 they incorporated their eighth subsidiary company for developing UMPP. During the year 200607 the company launched their IPO and the holding of Government of India reduced from 100 to 89.78 of the paidup equity. On successful completion of bidding process two of the subsidiaries Coastal Gujarat Power Ltd and Sasan Power Ltd were transferred to Tata Power Company Ltd and Reliance Power Ltd on April 22 2007 and August 7 2007 respectively. The company was registered as a Non Banking Financial Company by RBI and was conferred with the status of Nav Ratna by the Govt of India on June 22 2007. During the year 200708 the projects namely Maneri Bhali U134 228 MW of UTJVNL in Uttaranchal Balimela U7 of OHPC in Orissa and Teesta V HEP U2 170 MW of NHPC in Sikkim which were supported by the company were commissioned. The company sanctioned loans worth Rs 190 crore for R M and Life Extension of thermal power plants. Also they sanctioned Rs 222 crore for RU of Hydro Power Projects.In March 2008 the company signed an MoU with RITES Ltd A Govt. of India Enterprise to facilitate import of coal from African countries and elsewhere. Also they signed an MoU with TNEB whereby PFC would finance cogeneration projects of around 250 MW planned to be set up at a cost of Rs1200 crore in various cooperative and public sector sugar mills in the state of Tamil Nadu.In March 25 2008 the company launched a 100 owned subsidiary company namely PFC Consulting Ltd for providing consulting services. Also they incorporated an advisory company namely Power Equity Capital Advisors Private Limited to provide advisory services related to equity investments in Indian power sector.During the year 200809 the company established a Consortium Lending Group CLG with an aim to give fillip to Consortium Lending Operations particularly through the Power Lenders Club PLC which has 21 members including LIC HUDCO and 18 Indian banks. The projects in association with the company namely Baglihar HEP 3x150 MW of JKPDCL in Jammu and Kashmir Priyadarshni Jurala HEP 6x39 MW of APPGCL in Andhra Pradesh and Varahi HEP 2x115 MW of KPCL in Karnataka were commissioned.During the year the company sanctioned loans worth Rs 214 crore for RM and life extension of thermal power plants. Also they sanctioned Rs 48 crore for RM of hydro power projects. Chhattisgarh State Electricity Board was reorganized / unbundled into Chhattisgarh State Power Holding Company Ltd. Chhattisgarh State Power Generation Company Ltd. Chhattisgarh State Power Transmission Company Ltd. Chhattisgarh State Power Distribution Company Ltd. and Chhattisgarh State Power Trading Company Ltd with effect from January 1 2009. Also the company in association with NTPC NHPC and TCS promoted National Power Exchange Ltd with an authorized capital of Rs.50 crore. The company was conferred with the coveted KPMGInfrastructure Today Award 2008 for Most Admired Government Enabler Power category. During the year 200910 the company sanctioned loans worth Rs 1950 crore for RM and life extension of thermal power plants. Also they sanctioned Rs 74 crore for RM of hydro power projects. In August 2009 Jharkhand Integrated Power Ltd. for Tilaiya UMPP in Jharkhand has also been transferred on 7th August 2009 to Reliance Power Ltd. In November 2009 the company signed a joint venture agreement with TPC Ltd. Power Grid Corporation of India Ltd. and Rural Electrification Corporation Ltd for incorporating a Joint Venture Company with equal equity contribution i.e. 25 each from all the 4 CPSUs.As on March 31 2010 the company established twelve Special Purpose Vehicles for UMPPs to undertake preliminary site investigation activities necessary for conducting the bidding process for these projects. Ministry of Power is the facilitator for the development of these UMPPs while Central Electricity Authority CEA is the Technical Partner. These SPVs shall be transferred to successful bidders selected through Tariff Based International Competitive Bidding Process for implementation and operation. During the year 201011 loans worth Rs 556 crore were sanctioned for RM and life extension of thermal power plants and an amount of Rs 562 crore was disbursed. Also they disbursed Rs 83 crore for RM of hydro power projects. In July 28 2010 RBI classified the company as an Infrastructure Finance Company IFC.In October 2010 the company signed an MoU with NPCIL the only player in nuclear power generation in India for offering financial assistance to NPCIL for their new power projects as well as renovation refurbishment and life extension projects etc.During the first quarter of financial year 201112 the company made a Further Public Offer FPO of 229553340 equity shares of Rs 10 each. The issue included a fresh issue of 172165005 equity shares by the Company and an offer for sale of 57388335 equity shares by the President of India acting through Ministry of Power Government of India.In March 30 2011 the company incorporated a whollyowned subsidiary company namely Power Finance Corporation Green Energy Ltd to provide financial support for generating green Renewable and Nonconventional sources of energy. In July 18 2011 they incorporated a wholly owned subsidiary PFC Capital Advisory Services Ltd to syndicate and make financial arrangements for the Projects/ enterprises in the areas of power energy infrastructure and other industries.During 2012 the corporation incorporated a Special Purpose Vehicle SPV as a whollyowned subsidiary Company namely Deoghar Mega Power Limited. The Corporation also disbursed Rs 7400 cr loan to 5 sick DiscomsIn 2013 four Special Purpose Vehicles SPVs as wholly owned subsidiaries was incorporated by PFC Consulting Limited a wholly owned subsidiary of the Corporation Limited. PFC Green Energy a Wholly owned Subsidiary commenced operations in the month of March.In 2014 the corporation incorporated Two 2 wholly Owned Subsidiaries of Power Finance Corporation Ltd Cheyyur Infra Ltd and Odisha Infrapower Ltd. The Corporation decided to extend a Rs 15000crore loan to the Andhra Pradesh government to improve power sector infrastructure facilities and was officially announced. During the year The Securities and Exchange Board of India granted a certificate of registration as a Debenture Trustee to PFC Capital Advisory Services Limited a wholly owned subsidiary of Power Finance Corporation Limited PFC.In 2015 the corporation achieves MOU Targets of Financial Year 201415 for Sanctions and Disbursements. During the year the Corporation incorporated Bihar Mega Power Limited as its whollyowned subsidiary and also incorporated Jharkhand Infrapower Ltd as a wholly owned subsidiary of the corporation.On 27 July 2015 Government of India offloaded 6.6 crore equity shares representing a 5 stake in Power Finance Corporation via Offer for Sale through the stock exchanges mechanism. After the stakesale Government of Indias holding in PFC declined to 67.8 from 72.8.On 21 April 2016 Power Finance Corporation informed the stock exchanges that Odisha Generation PhaseII Transmission Limited a wholly owned subsidiary of PFC Consulting Limited wholly owned subsidiary of Power Finance Corporation Limited established for development of common transmission system for phaseII generation projects in Odisha has been transferred to M/s Sterlite Grid 3 Limited the successful bidder.On 2 June 2016 Power Finance Corporation Ltd PFC announced that it has acquired 23.32 stake in Shree Maheshwar Hydel Power Corporation Limited SMHPCL upon invocation of shares pledged by SMHPCLs promoters and upon partial conversion of sub debt loan to SMHPCL. PFC decided to invoke the pledged shares following loan default from SMHPCL. PFC was one of the lenders to SMHPCL and had given loan of Rs 700 crore to SMHPCL along with guaranteeing Rs 400 crore to the bond holders of SMHPCL.On 6 July 2016 Power Finance Corporation Ltd informed the stock exchanges that WaroraKurnool Transmission Limited a wholly owned subsidiary of PFC Consulting Limited wholly owned subsidiary of Power Finance Corporation established for development of Transmission System for Additional interRegional AC link for import into Southern Region i.e. Warora Warangal and Chilakaluripeta Hyderabad KurnooI 765 kV link Common Transmission System has since been transferred to M/s Essel Infraprojects Limited the successful bidder on 6 July 2016.The Board of Directors of Power Finance Corporation Ltd at its meeting held on 14 July 2016 recommended issue of bonus shares in the ratio of 1:1.On 15 July 2016 Power Finance Corporation Ltd informed the stock exchanges that GurgaonPalwal Transmission Limited a wholly owned subsidiary of PFC Consulting Limited established for development of Transmission System for Creation of new 400 kV substations in Gurgaon area and Palwal area as a part of ISTS has since been transferred to M/s Sterlite Grid 4 Limited the successful bidder on 14 July 2016.The Board of Directors of Power Finance Corporation at its meeting held on 29 September 2017 approved scheme of Arrangement for the amalgamation of its wholly owned subsidiary company i.e. PFC Green Energy Limited with the company in order to consolidate the similar nature of business of the two companies at one place which will provide several benefits including concentrated management focus streamlined group structure cost rationalization and more efficient utilization of capital etc. The synergies created by the scheme of arrangement would increase operational efficiency and integrate business functions. PFC Green Energy Limited is engaged is in similar line of business as the parent firm and is focused on renewable and green energy. On 7 December 2017 Power Finance Corporation PFC announced that it has successfully closed the deal for issuance of USD 400 million Green Senior Unsecured Notes offering at a fixed rate coupon of 3.75 from the international debt capital markets under Regulation S of the U.S. Securities Act of 1933 as amended on 6 December 2017 and completed the formalities for listing at Singapore Exchange SGXST and International Securities Market segment of the London Stock Exchange.
OrganisationPower Finance Corporation Ltd
HeadquartersNew Delhi
IndustryFinance