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In just two working days since its launch, State-owned Power Finance Corporation’s (PFC) ₹5,000-crore public issue of non-convertible debentures (NCD) has been oversubscribed, prompting the company to close the issue 11 days ahead of its scheduled closure.
The issue which opened on Friday last was closed on Monday (the second working day) after receiving demands for 4.47 crore bonds, nearly nine times the 50 lakh bonds on offer. The issue was originally to close on January 29.
The base issue size was ₹500 crore with a green-shoe option of ₹ 4,500 crore. So technically, the company can retain the entire ₹4,477.63 crore received for the issue, market observers said.
As much as 80 per cent of the NCD issue is reserved for retail and high networth individual investors.
With PFC having already filed a shelf prospectus with limit up to ₹10,000 crore, the company is next expected to roll out the tranche II in the current fiscal itself.
PFC may wait for a period of two weeks before launching the next tranche, sources added.
Each NCD — which carries AAA credit rating — has a face value of ₹1,000 each and tranche I offered options for tenors of 3,5,10 and 15 years. The minimum application is for 10 NCDs. The coupon rates range from 4.65 per cent to 7.15 per cent, depending on the tenor and the category of investor making the purchase.
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