Photo Caption Smt. Parminder Chopra, Chairman and Managing Director.JPG
Kolkata, January 15, 2026: Power Finance Corporation Limited, a public financial institution and a Schedule-A Maharatna Central Public Sector Enterprises (CPSE), focused on the power sector, has filed tranche I prospectus dated January 9, 2026 (“Tranche I Prospectus”) for public issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of Rs. 1,000 each (except in case of zero coupon NCD, face value shall be ₹ 1,00,000 each). The base issue size is Rs. 500 crore with a green shoe option of up to Rs. 4,500 crore, aggregating up to Rs. 5,000 crore (“Tranche I Issue”), which is within the shelf limit of Rs. 10,000 crore (“Issue”).
The Tranche I Issue opens on Friday, January 16, 2026, and closes on Friday, January 30, 2026 with an option of early closure or extension in compliance with Securities and Exchange Board of India Issue and listing of (Non-Convertible Securities) Regulations 2021, as amended (“SEBI NCS Regulations”). The NCDs are proposed to be listed on National Stock Exchange of India Limited (“NSE”), with NSE being the Designated Stock Exchange for the Issue. The NCDs have been rated by “CARE AAA; Stable” by CARE Ratings Limited, “Crisil AAA/Stable” by Crisil Ratings Limited and “[ICRA] AAA (Stable)” by ICRA Limited.
The minimum application size would be Rs. 10,000 (i.e. 10 NCDs) and thereafter in multiples of Rs. 1,000 (i.e. 1 NCD) thereof (except in case of Series III NCDs (zero coupon NCD), the minimum application shall be 1 NCD and in multiple of 1 NCD thereafter. (For Series III NCDs, the minimum application amount shall be ₹ 51,502 for Category I and II; ₹ 51,263 for Category III and ₹ 50,780 for Category IV). This issue has maturity / tenure options of 5 years, 10 years and 15 years for NCDs with annual coupon payment being offered across series I, II, and IV, respectively. Effective yield for NCD holders in various categories ranges from 6.85% to 7.30% per annum.
Out of the net proceeds of the Tranche I Issue, at least 75% shall be utilised for the purpose of onward lending, financing / refinancing the existing indebtedness of the company, and /or debt servicing (payment of interest and/or repayment / prepayment of interest and principal of existing borrowings of the Company) and a maximum up to 25% will be utilised for general corporate purposes. The funds raised form the issuance of zero coupon NCDs shall be utilised towards only the purpose of onward lending and shall not be used for any other purpose.
The Company’s consolidated revenues from operations were Rs. 57,429.28 crore for the six months ended September 30, 2025 and its net profit was Rs. 16,815.84 crore.
For FY25, its consolidated revenue from operations were Rs. 106,501.62 crore and its net profit was Rs. 30,514.40 crore.
The terms of each series of Secured NCDs, offered under Tranche I Issue are set out below:
| Series | I | II* | III | IV | V |
| Tenor | 5 years | 10 years | 10 years 1 Month | 15 years | 15 years |
| Frequency of Interest Payment | Annual | Annual | Zero Coupon NCD | Annual | Cumulative |
| Minimum Application and in multiples of thereafter (₹) | ₹10,000 (10 NCD) and in multiple of ₹1,000 (1 NCD) thereafter.
Except in case of Series III NCDs (zero coupon NCD), the minimum application shall be 1 NCD and in multiple of 1 NCD thereafter. (For Series III NCDs, the minimum application amount shall be ₹51,502.00 for Category I and II; ₹51,263.00 for Category III and ₹50,780.00 for Category IV Investors)
|
||||
| Face Value (₹/ NCD) | ₹1,000
|
₹1,00,000
|
₹1,000
|
||
| Issue Price of NCDs (₹/ NCD) for NCD Holders in Category I and Category II. | ₹1,000
|
₹51,502.00 | ₹1,000
|
||
| Issue Price of NCDs (₹/ NCD) for NCD Holders in Category III. | ₹51,263.00 | ||||
| Issue Price of NCDs (₹/ NCD) for NCD Holders in Category IV. | ₹50,780.00 | ||||
| Coupon (% per annum) for NCD Holders in Category I and Category II. | 6.85%
|
7.00%
|
NA | 7.05%
|
N.A. |
| Coupon (% per annum) for NCD Holders in Category III | 6.90%
|
7.10%
|
NA | 7.20%
|
N.A. |
| Coupon (% per annum) for NCD Holders in Category IV | 7.00%
|
7.20%
|
NA | 7.30%
|
N.A. |
| Effective Yield (% per annum) for NCD Holders of Category I
and Category II |
6.85%
|
6.99%
|
6.80% | 7.04%
|
7.05%
|
| Effective Yield (% per annum) for NCD Holders of Category
III |
6.90%
|
7.09%
|
6.85%
|
7.19%
|
7.20%
|
| Effective Yield (% per annum) for NCD Holders of Category
IV |
7.00%
|
7.19%
|
6.95%
|
7.29%
|
7.30%
|
| Mode of Interest Payment | Through various modes available | ||||
| Amount (₹ / NCD) on Maturity for NCD Holders in Category
I and Category II |
₹1,000 | ₹1,000 | ₹1,00,000
|
₹1,000 | ₹2,780.50
|
| Amount (₹ / NCD) on Maturity for NCD Holders in Category
III |
₹1,000 | ₹1,000 | ₹1,00,000
|
₹1,000 | ₹2,839.56
|
| Amount (₹ / NCD) on Maturity for NCD Holders in Category
IV |
₹1,000 | ₹1,000 | ₹1,00,000
|
₹1,000 | ₹ 2,879.58
|
| Maturity / Redemption Date (from the Deemed Date of
Allotment) |
5 years | 10 years | 10 years 1 Month | 15 years | 15 years |
| Nature of Indebtedness | Secured | ||||
| Put and Call Option | Not applicable | ||||
*The Company shall allocate and allot Series II NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.
- With respect to Series where interest is to be paid on an annual basis, relevant interest will be paid on each anniversary of the Deemed Date of Allotment on the face value of the NCDs. The last interest payment will be made at the time of redemption of the NCDs.
- With respect to Series III NCDs, the NCDs are being issued on discount. For further details on taxation, please see “Statement of Possible Tax Benefits” on page 37 and “Material Contracts and Documents on page 140 of the Tranche I Prospectus.
- Subject to applicable tax deducted at source. For further details, please see “Statement of Possible Tax Benefits” on page 37 of the Tranche I Prospectus.
- Please refer to “Annexure C” of the Tranche I Prospectus, for details pertaining to the cash flows of the Company in accordance with the SEBI Master Circular. Coupon Payments falling on working Saturdays will be made on same day.
- Applicants are advised to ensure that they have obtained the necessary statutory and/or regulatory permissions/consents/approvals in connection with applying for, subscribing to, or seeking Allotment of NCDs pursuant to the Issue. For further details, please see “Issue Procedure” and “Terms of Issue” on page 102 and 81, respectively, of the Tranche I Prospectus.
Tipsons Consultancy Services, A. K. Capital Services Limited, Nuvama Wealth Management Limited and Trust Investment Advisors Private Limited are the lead managers to the Issue (“Lead Managers”). Beacon Trusteeship Limited is the Debenture Trustee to the Issue and KFin Technologies Limited is the Registrar to the Issue.
About Power Finance Corporation Limited:
Power Finance Corporation Limited is a publicly listed Government of India (GoI) undertaking and operates as a public financial institution as defined under the Companies Act of 2013. Registered with the Reserve Bank of India (RBI) as a non-deposit taking systemically important Non-Banking Financial Company (NBFC), it obtained the classification of an Infrastructure Finance Company (IFC) on July 28, 2010. The Company believes that its NBFC and IFC classifications enables it to effectively capitalize on available financing opportunities in the Indian power sector.
Note 1: For further details, please refer to “Specific Terms for NCDs” on page 77 of the Tranche I Prospectus.
Note 2: The Tranche I Issue shall remain open for subscription on Working Days from 10:00 a.m. to 5:00 p.m. (Indian Standard Time) during the period as indicated in the Tranche I Prospectus. Our Company may, in consultation with the Lead Managers, consider closing the Tranche I Issue on such earlier date or extended date (subject to a minimum period of two working days and a maximum period of ten working days from the date of opening of the Tranche I Issue and subject to not exceeding thirty days from filing the Tranche I Prospectus with RoC including any extensions), as may be decided by the Board of Directors of our Company or our Chairman and Managing Director on recommendation of our Director (Finance), subject to relevant approvals, in accordance with Regulation 33A of the SEBI NCS Regulations. In the event of an early closure or extension of the Tranche I Issue, our Company shall ensure that notice of the same is provided to the prospective investors through an advertisement in all the newspapers or electronic modes such as online newspapers or website of the issuer or the stock exchange in which pre-issue advertisement for opening of the Tranche I Issue has been given on or before such earlier or initial date of Tranche I Issue closure. On the Tranche I Issue Closing Date, the Application Forms will be accepted only between 10:00 a.m. and 3:00 p.m. (Indian Standard Time) and uploaded until 5:00 p.m. (Indian Standard Time) or such extended time as may be permitted by the stock exchanges (i.e. NSE and BSE). Further, pending mandate requests for bids placed on the last day of bidding will be validated by 5:00 p.m. (Indian Standard Time) on the Tranche I Issue Closing Date. For further details please refer to the section titled “General Information” on page 19 of the Tranche I Prospectus.
DISCLAIMERS: For further details, refer to section titled “Issue Related Information” on page 73 of the Tranche I Prospectus dated January 09, 2026. Allotment in the public issue of debt securities should be made on the basis of date of upload of each application into the electronic book of the stock exchange. However, on the date of oversubscription and thereafter, the allotments should be made to the applicants on proportionate basis.
#The Tranche I Issue shall remain open for subscription on Working Days from 10:00 a.m. to 5:00 p.m. (Indian Standard Time) during the period as indicated above, except that the Tranche I Issue may close on such earlier date or extended date (subject to a minimum period of two working days and a maximum period of ten working days from the date of opening of the Tranche I Issue and subject to not exceeding thirty days from filing tranche prospectus with ROC) including any extensions), as may be decided by the Board of Directors of our Company, subject to relevant approvals, in accordance with Regulation 33A of the SEBI NCS Regulations. In the event of an early closure or extension of the Tranche I Issue, the Company shall ensure that notice of the same is provided to the prospective investors through an advertisement in an English daily national newspaper with wide circulation and a regional daily with wide circulation where the registered office of the Company is located (in all the newspapers in which pre-issue advertisement for opening of the Tranche I Issue has been given on or before such earlier or initial date of Issue closure). On the Tranche I Issue Closing Date, the Application Forms will be accepted only between 10:00 a.m. and 3:00 p.m. (Indian Standard Time) and further, pending mandate requests for bids placed on the last day of bidding will be validated by 5:00 p.m. (Indian Standard Time) on the Tranche I Issue Closing Date. For further details, please refer to the chapter titled “Issue Related Information” on page 73 of the Tranche I Prospectus.
DISCLAIMER
Power Finance Corporation Limited (“Company”), subject to market conditions, and other considerations, is proposing a public issue of secured, rated, listed, redeemable non-convertible debentures (“NCDs”) and has filed the Tranche I Prospectus dated January 9, 2026 (“Tranche I Prospectus”), which should be read together with Shelf Prospectus dated January 9, 2026 (“Shelf Prospectus”), Draft Shelf Prospectus dated December 22, 2025 (“Draft Shelf Prospectus”) (collectively the “Prospectus”), with the Registrar of Companies, Delhi and Haryana, at New Delhi (“RoC”), National Stock Exchange of India Limited (“NSE”) and Securities and Exchange Board of India (“SEBI”). The Prospectus is available on the website of the Company at www.pfcindia.co.in, on the website of NSE at www.nseindia.com, on the websites of the lead managers at https://www.trustgroup.in/, www.nuvama.com, www.tipsons.com, www.akgroup.co.in and on the website of SEBI at www.sebi.gov.in. Investors proposing to participate in the Tranche I Issue should invest only on the basis of the information contained in the Prospectus. Investors should note that investment in the NCDs involves a high degree of risk and for details in relation to the same, refer to the Prospectus, including the section titled “Risk Factors” beginning on page 18 and “Material Developments” beginning on page 240 of the Shelf Prospectus/ Trance I prospectus
Capitalised terms not defined herein shall have the same meaning as assigned to such terms in the Shelf Prospectus and the Tranche I Prospectus, both dated January 9, 2026.
DISCLAIMER: Investors proposing to participate in the Tranche I Issue should note that investment in the NCDs involves a high degree of risk and for details in relation to the same, refer to the Shelf Prospectus and Tranche I Prospectus, both dated January 9, 2026, including the sections titled “Risk Factors” beginning on page 18 and “Material Developments” beginning on page 240 of the Shelf Prospectus / Tranche I prospectus. The Issuer and the Lead Managers accept no responsibility for statements made otherwise than in the Prospectus or in the advertisement or any other material issued by or at the instance of the Company and that anyone placing reliance on any other source of information would be doing so at their own risk.
DISCLAIMER CLAUSE OF NSE:
It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Prospectus has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the “Disclaimer Clause of NSE”.
DISCLAIMER CLAUSE OF USE OF NSE ELECTRONIC PLATFORM:
It is also to be distinctly understood that, the approval given by the Exchange is only to use the software for participating in system of making application process. It is to be distinctly understood that the permission given by the NSE to use their network and online platform for facilitating applications for public issue of NCDs shall not in any way be deemed or construed as compliance with various statutory and other requirements by the Company, LMs etc.; are cleared or approved by NSE; nor does it warrant in any manner, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements nor does it take any responsibility for the financial or other soundness of the Issuer, its management or any scheme or projects of the Issuer. It is also to be distinctly understood that the approval given by NSE should not in any way be deemed or construed that the Prospectus has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of the Prospectus; nor does it warrant that the securities will be listed or will continue to be listed on NSE.
DISCLAIMER CLAUSE OF USE OF BSE ELECTRONIC PLATFORM: It is to be distinctly understood that, the permission given by the BSE to use their network and software of the Online system should not in any way be deemed or construed as compliance with various statutory requirements approved by the Exchange; not does it in any manner warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements; nor does it take any responsibility for the financial or other soundness of the Company, its management or any scheme or project of the Company. It is also to be distinctly understood that, the approval given by the Exchange is only to use the software for participating in system of making application process.
DISCLAIMER STATEMENT OF CRISIL
Crisil Ratings Limited (Crisil Ratings) has taken due care and caution in preparing the Material based on the information provided by its client and / or obtained by Crisil Ratings from sources which it considers reliable (Information). A rating by Crisil Ratings reflects its current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by Crisil Ratings. Crisil Ratings does not guarantee the completeness or accuracy of the information on which the rating is based. A rating by Crisil Ratings is not a recommendation to buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. The Rating is not a recommendation to invest/disinvest in any entity covered in the Material and no part of the Material should be construed as an expert advice or investment advice of any form of investment banking within the meaning of any law or regulation. Crisil Ratings especially states that it has no liability whatsoever to the subscribers/users/transmitters/ distributors of the Material. Without limiting the generality of the foregoing, nothing in the Material is to be construed as Crisil Ratings providing or intending to provide any services in jurisdictions where Crisil Ratings does not have the necessary permission and/or registration to carry out its business activities in this regard. Power Finance Corporation Limited will be responsible for ensuring compliances and consequences of non-compliances for use of the Material or part thereof outside India. Current rating status and Crisil Ratings rating criteria are available without charge to the public on the website, www.crisilratings.com. For the latest rating information on any instrument of any company rated by Crisil Ratings, please contact Customer Service Helpdesk at 1800-267-1301.
DISCLAIMER STATEMENT OF ICRA
All information contained in the Press Release has been obtained by ICRA from sources believed by ICRA to be accurate and reliable. Although reasonable care has been taken to ensure that the information therein is true, such information is provided ‘as is’ without any warranty of any kind, and in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. All information contained therein must be construed solely as statements of opinion and not any recommendation for investment. ICRA shall not be liable for any losses incurred by users from any use of the Press Release or its contents. Also, ICRA may provide other permissible services to the Company at arms-length basis.
DISCLAIMER STATEMENT OF CARE
The ratings issued by CARE Ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are not recommendations to sanction, renew, disburse, or recall the concerned bank facilities or to buy, sell, or hold any security. These ratings do not convey suitability or price for the investor and no part of the Material should be construed as an expert advice or investment advice within the meaning of any law or regulation. The rating agency does not constitute an audit on the rated entity. CARE Ratings has based its ratings/outlook based on information obtained from reliable and credible sources. CARE Ratings does not, however, guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions and the results obtained from the use of such information.
DISCLAIMER STATEMENT OF CAAPL:This report is prepared by CARE Advisory Research and Training Limited (CareEdge Research). CareEdge Research has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in CareEdge Research’s proprietary database, and other sources considered by CareEdge Research as accurate and reliable including the information in public domain. The views and opinions expressed herein do not constitute the opinion of CareEdge Research to buy or invest in this industry, sector or companies operating in this sector or industry and is also not a recommendation to enter into any transaction in this industry or sector in any manner whatsoever.
This report has to be seen in its entirety; the selective review of portions of the report may lead to inaccurate assessments. All forecasts in this report are based on assumptions considered to be reasonable by CareEdge Research; however, the actual outcome may be materially affected by changes in the industry and economic circumstances, which could be different from the projections.
Nothing contained in this report is capable or intended to create any legally binding obligations on the sender or CareEdge Research which accepts no responsibility, whatsoever, for loss or damage from the use of the said information. CareEdge Research is also not responsible for any errors in transmission and specifically states that it, or its Directors, employees, parent company – CARE Ratings Ltd., or its Directors, employees do not have any financial liabilities whatsoever to the subscribers/users of this report. The subscriber/user assumes the entire risk of any use made of this report or data herein. This report is for the information of the authorised recipient in India only and any reproduction of the report or part of it would require explicit written prior approval of CareEdge Research.
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• Public Issue of secured, rated, listed, taxable, redeemable, non-convertible debentures (NCDs) of face value of Rs. 1,000 each (except in case of zero coupon NCD, face value shall be ₹ 1,00,000 each)
• The Tranche I Issue of NCDs is for a Base Issue Size of Rs. 500 crore with a green shoe option of up to Rs. 4,500 crore aggregating up to Rs. 5,000 crore, which is within the shelf limit of Rs. 10,000 crore
• NCDs are rated “CARE AAA; Stable” by CARE Ratings Limited, “Crisil AAA/Stable” by Crisil Ratings Limited and [ICRA] AAA (Stable) by ICRA Limited
• Coupon Rate up to 7.30% p.a (for NCD Holders in Category IV with a tenor of 15 years, payable annually)1
• Tranche I NCD Issue opens on Friday, January 16, 2026 and closes on Friday, January 30, 2026 with an option of early closure or extension2
• The NCDs are proposed to be listed on National Stock Exchange of India Limited (“NSE”) (“Stock Exchange”). NSE is the designated stock exchange for the Tranche I Issue
