# PFC Plans to Raise ₹5,000 Crore Through Public Issue of Non-Convertible Debentures
Main Highlights
# PFC Plans to Raise ₹5,000 Crore Through Public Issue of Non-Convertible Debentures
## Introduction
Detailed Analysis
Power Finance Corporation (PFC), a government-owned Maharatna company dedicated to financing the power sector, has announced its plan to raise ₹5,000 crore from the market. The company will launch a public issue of secure non-convertible debentures (NCDs) under the name ‘Trench-1’. This issue is set to open on January 16, 2026, and will close on January 30, 2026. However, PFC retains the right to close the issue earlier or extend the dates as necessary.
## Investment Details
### Minimum Investment Requirement
Why This News Matters
Investors looking to participate in this public issue will need to invest a minimum of ₹10,000, which is equivalent to purchasing 10 NCDs. Subsequent investments can be made in multiples of ₹1,000. This structured investment approach makes it accessible for a wide range of investors.
### Credit Ratings and Security
The NCDs being issued by PFC have received an AAA rating from credit rating agencies CARE, CRISIL, and ICRA. This high rating indicates that the investment is a secure option for investors, providing them with confidence in the safety of their funds.
## Issue Structure
### Base Amount and Green Shoe Option
The base amount for this issue is set at ₹500 crore. However, if there is significant demand from investors, PFC has the option to increase the total amount to ₹5,000 crore through a ‘green shoe option’. This flexibility allows the company to cater to investor interest effectively.
### Listing on National Stock Exchange
The NCDs will be listed on the National Stock Exchange (NSE), providing investors with a platform to trade their debentures post-issue. This listing enhances liquidity and offers an exit strategy for investors.
## Utilization of Funds
PFC has outlined a clear plan for the utilization of funds raised through this public issue. At least 75% of the proceeds will be directed towards providing new loans and repaying existing debts. The remaining 25% will be allocated for the company’s general operations. Specifically, the funds obtained from the zero-coupon NCDs will be exclusively used for loan disbursement.
## Financial Performance
### Recent Profit Figures
In the fiscal year 2024-25, PFC reported a profit of ₹30,514 crore. Additionally, during the half-year period ending September 2025, the company recorded a net profit of ₹16,815.84 crore. These robust financial results underscore PFC’s strong position in the market and its capability to manage investments effectively.
## Management and Advisory Team
To ensure the successful execution of this public issue, PFC has appointed several firms as lead managers, including Tipsons Consultancy, A.K. Capital Services, Nuvama Wealth Management, and Trust Investment Advisors. , Beacon Trusteeship will serve as the debenture trustee, while KFin Technologies will act as the registrar for this issue.
## Conclusion
The upcoming public issue of non-convertible debentures by Power Finance Corporation presents a promising opportunity for investors seeking a secure investment in the power sector. With AAA ratings, a structured investment plan, and a clear strategy for fund utilization, PFC is well-positioned to attract significant interest from both retail and institutional investors. As the issue date approaches, potential investors are encouraged to consider this opportunity carefully, keeping in mind the company’s strong financial performance and commitment to supporting the power sector in India.
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