Power Finance Corporation Limited has announced a significant public issue of secured, rated, listed, redeemable non-convertible debentures (NCDs) worth up to ₹5,000 crores. The Chairman & Managing Director, on recommendation of the Director (Finance), has approved this comprehensive debt issuance under the company's shelf limit of ₹10,000 crores.

Issue Structure and Size

The NCD issue features a strategic two-tier structure designed to provide flexibility in fundraising. The base issue size stands at ₹500 crores, with an option to retain oversubscription up to ₹4,500 crores, bringing the total Tranche I Issue Limit to ₹5,000 crores.

Investment Options Across Five Series

The issue offers five distinct NCD series, each tailored to different investor preferences and risk appetites. The series vary in tenor, coupon structure, and effective yields, providing comprehensive options for diverse investment strategies.

Investor Categories and Pricing

The NCDs are structured with differentiated pricing across four investor categories, offering enhanced returns for specific investor segments. Category IV investors receive the highest effective yields across all series, while Categories I and II receive base rates.

For Series III zero coupon NCDs, the issue prices vary significantly by category:

• Categories I and II: ₹51,502.00 per NCD
• Category III: ₹51,263.00 per NCD
• Category IV: ₹50,780.00 per NCD

Security and Issue Timeline

The NCDs are secured by a first pari-passu charge through hypothecation of book debts and receivables, maintaining a security cover of at least 100% of outstanding principal and interest until maturity. This security structure provides enhanced protection for investors.

Regulatory Compliance and Documentation

The issue operates under comprehensive regulatory framework compliance, with the Shelf Prospectus and Tranche I Prospectus dated January 09, 2026, filed with the Registrar of Companies, Delhi and Haryana. The documentation has been submitted to SEBI and the National Stock Exchange of India Limited, ensuring full regulatory adherence.

In case of payment default, the company has committed to paying additional interest of at least 2% per annum over the coupon rate for the defaulting period, providing additional investor protection. The issue remains open on working days from 10:00 a.m. to 5:00 p.m. during the subscription period, with provisions for early closure or extension subject to regulatory requirements.

Power Finance Corporation has officially incorporated a new subsidiary to handle transmission infrastructure development in Maharashtra, following regulatory approvals and coordination appointments from the state electricity transmission company.

Official Subsidiary Incorporation

Power Finance Corporation has formally incorporated Latur Rez Transmission Limited as a wholly owned subsidiary of PFC Consulting Limited on December 11, 2025. The subsidiary has been established specifically for the development of a 400/220/132 kV Air Insulated Substation (AIS) in Latur, Maharashtra.

MSETCL Appointment and Coordination Role

Maharashtra State Electricity Transmission Company Limited (MSETCL) has appointed PFC Consulting Limited as the Bid Process Coordinator (BPC) through a Letter of Intent dated August 14, 2025. This appointment positions the company to manage the selection process for transmission service providers through a tariff-based competitive bidding process.

The bid coordinator role involves preparing project profiles, initiating land acquisition processes, and seeking forest clearances where required. As per the tariff-based competitive bidding guidelines issued by the Ministry of Power, these preparatory activities necessitate the formation of a Special Purpose Vehicle (SPV).

Strategic Development Framework

The newly incorporated subsidiary will undertake various preparatory activities including surveys, report preparation, and initialization of land acquisition processes. Following the completion of the competitive bidding process, the SPV will be transferred to the successful bidder who will then develop the transmission project.

Infrastructure Significance

The 400/220/132 kV multi-voltage substation represents critical infrastructure for Maharashtra's power transmission network. This configuration enables high-capacity power transmission and distribution, supporting the state's industrial and residential electricity requirements while ensuring grid stability and reliability. The project aligns with Power Finance Corporation's strategic expansion in transmission infrastructure development across key Indian states.