Power Finance Company (PFC) launched public Issue of Tax Free Bond Issue

Issue Early closer – 5 Oct 2013    Listing Date – 20 Nov 2013

Product Note

Issue Highlight –Tranche 1 
IssuerPower Finance Corporation Ltd ( PFC) Tranche-1
Type of InstrumentSecured, Redeemable, NCD having tax benefit u/s 10 (15) (iv) (h)
Issue Open14 Oct., 2013
Issue Close11 Nov., 2013 (with option of early closure or extension)
Issue Size750 Cr. with an option to retain oversubscription of 3875.90 Cr.
Face ValueRs. 1,000
Min. Application Size5 Bonds (Rs.5000) & multiply of 1 Bond thereafter (across all series bonds)
Interest Annually
Mode of AllotmentD'mat as well as Physical Form
RatingCARE AAA by CARE ,CRISIL & ICRA
ListingBSE
Interest on Application MoneyOn Allotment : same as coupon Rate On Refund : 5.00% P.A.

Issue Structure –

OptionsTranche 1 Series 1 BTranche 1 Series 2 BTranche 1 Series 3 B
Tenor10 years15 years20 years
Coupon Rate %
Category - I, II, III - Series A8.18%8.54%8.67%
Category - IV (Retail) Series B8.43%8.79%8.92%

Cheque Details-  

Retail Investor                  : ” PFC Tax Free Bonds 2013-Escrow Account – R

 

NRI  Investor 

Repatriation basis       :  ”  PFC TAX FREE BONDS 2013 – ESCROW ACCOUNT – NR REPAT

Non Repatriation basis: PFC TAX FREE BONDS 2013 – ESCROW ACCOUNT – NR NON – REPAT  “

 Note :   Application will be rejected if banked without uploading in the electronic system of the recognized stock exchange. (Bidding process)

Bankers :  Axis Bank, Kotak Bank , HDFC Bank, IDBI Bank, ICICI Bank, IndusInd Bank , SBI , Union Bank , PNB, Yes Bank

About Issue

About the Issuer

  • Conferred with Mini Ratna ( Category – I ) status in 1998 and notified as a Navratna company by the Govt. of India in 2007.
  • Listed government company and public financial institution providing comprehensive range of financial products and related advisory services from project conceptualization to post-commissioning stage for clients in the power sector
  • Registered with RBI as a non-deposit taking systemically important NBFC classified as an IFC in July 2010
  • PFC is an integral part of, and continues to play a strategic role in, GoI’s initiatives for development of power sector in India.

 Business Activities

  • Comprehensive range of financial products to clients in power sector :
    • Fund-based financial products including long-term project finance short-term loans, buyer’s line of credit and debt refinancing schemes.
    • Non-fund based assistance including default payment guarantees and letters of comforts
  • Fee-based technical advisory and consultancy services for power sector projects

Financial Performance

  • Total loan assets increased from 1,60,366.60 Cr. As on Mar 31., 2013
  • Total ncome  4419.60 Cr as on 31 Mar., 2013
  • Profit after Tax 4419.60 Cr. As on 31 Mar., 2013
  • Gross NPAs  1134.52 Cr. As on 31 Mar., 2013
  • Net worth as of March 31, 2013 was 22,351.41 Cr. (0.71% of total loan assets)
  • Capital adequacy ratio  17.98 % as on Mar 31 2013

 Benefit to Investor

  • The Income by way of Interest on these Bonds is fully exempt from Income Tax as per provision under section 10(15) (iv) (h) of IT act. ( Tax Free Bond Interest  not part of Total Income)
  • No deduction of TDS from the interest
  • No upper limit on investment amount
  • No lock in period for the Bonds
  • The Bonds shall be listed and can be traded on BSE
  • Capital Gain Benefit – capital gain arising on the transfer of listed bonds shall be taxed @ 10% without Indexation or @20% with Indexation.

 Pre Tax Returns are very attractive

OptionsTax Free Bond CouponTax Bracket 10.30 % Tax Bracket 20.60% Tax Bracket 30.90%
10 Years8.43 %9.40 %10.62 %12.20 %
15 Years8.79 %9.80 %11.07 %12.72 %
20 Years 8.92 %9.94 %11.23 %12.91 %

 

 

How to Apply

 

First read details about Issue & clear all doubts before apply Issue. If follow process 100% allotment chances.  Major reason for rejection is non proper filling Form.

  • Every Application Form is unique Application No. (Same Application No use by two Applicant
  • Bidding Process : Application will be rejected if banked without uploading in the electronic system of the recognized stock exchange
  • Allotment on First come First serve Basis , Are you interested to Invest then submit Form early as possible (Application money Interest paid by Issuer )

Listing

Tax Free Bond 2013-14PFC Ltd
Issue Open
Issue Close
Issue RegistrarKarvy Computershare
Listing ExchangeBSE
Allotment Date16 Nov 2013
Listing Date20 Nov, 2013
Interest Payment Date16 Nov Every Year
Face Value1000
Circular Ref. No BSE - 20131119-17
Series 1ASeries 2ASeries 3ASeries 1BSeries 2BSeries 3B
Coupon8.18%8.54%8.67%8.43%8.79%8.92%
Period10 Years15 Years20 Years10 Years15 Years20 Years
ISIN NoINE 134E07414 INE 134E07430INE 134E07455INE 134E07422INE 134E07448INE 134E07463
BSE Script 961799961800961801961802961803961804
Maturity16 Nov 202316 Nov 202816 Nov 203316 Nov 202316 Nov 202816 Nov 2033

Listing Date :

Allotment Date :

 

Registrar of Issue :      Karvy Computershare Pvt Ltd

Allotment link               After issue closed updated

Trustee for Bondholders : IL & FS  Trustee Company Ltd

 Depositories :  NSDL & CDSL

 

Application Form & Investment Call : Rajendra 800 775 0904

Contact Us

rajendra@puneinvest.com

Mobile 7719917444