PFC rallies 5% on opening of tax-free bonds issue

Power Finance Corporation (PFC) has rallied 5% to Rs 138 on reports that the state-owned company will launch medium- to long-term infrastructure bonds in the first week of January to raise around Rs 5,000 crore.

The infrastructure finance company’s tax-free bonds issue, which opens today, is offering 8.30% on 15-year and 8.20% on 10-year bonds. The issue will remain open for subscription till January 16. PFC aims to raise Rs 4,033 crore after having already raised Rs 967 crore through private placement, the report suggests.

Half of the total issuance will be allotted to institutional investors, while a quarter will be issued to high net-worth individuals and the remainder to retail investors, the report added.

The stock opened at Rs 133 and touched a high of Rs 139.30 on the National Stock Exchange. A combined around two million shares have changed hands on the counter so far on both the exchanges.