PFC gains on pre-closure of tax-free bond issue

Power Finance Corporation gained 3.07% to Rs 147.80 at 15:15 IST on BSE after the company said that the public issue of Tax Free Bonds 2013-14 will pre close today, 5 November 2013 from its earlier scheduled close on 11 November 2013.

The announcement was made during market hours today, 5 November 2013.

Meanwhile, the S&P BSE Sensex was down 240.87 points or 1.13% at 20,998.49

On BSE, 4.51 lakh shares were traded in the counter as against average daily volume of 4.14 lakh shares in the past one quarter.

The stock hit a high of Rs 151.10 and a low of Rs 139.90 so far during the day. The stock had hit a 52-week low of Rs 97.40 on 2 August 2013. The stock had hit a 52-week high of Rs 227 on 8 February 2013.

The stock outperformed the market over the past one month till 3 November 2013, surging 6.98% compared with the Sensex's 6.72% rise. The scrip had also outperformed the market in past one quarter, advancing 46.18% as against Sensex's 10.83% rise.

The large-cap company has equity capital of Rs 1320.04 crore. Face value per share is Rs 10.

Power Finance Corporation (PFC)'s Rs 750-crore tax-free bond issue had opened for subscription on 14 October 2013. The public issue of tax free bonds will pre close today, 5 November 2013 from its earlier scheduled close on 11 November 2013. The price of each bond is Rs 1000. The bonds carry a term of 10, 15 and 20 years which an investor can choose to invest based on one's requirement. All the three credit rating agencies, CRISIL, ICRA and CARE rated the issue as 'AAA', which is their highest rating to any debt issue. These bonds are 'Secured' in nature against certain assets of the company. The bonds will be listed on BSE.

PFC's net profit rose 23.3% to Rs 1198.24 crore on 27.2% growth in total income to Rs 5017.10 crore in Q1 June 2013 over Q1 June 2012.

PFC was incorporated with an objective to provide financial resources and encourage flow of investments to the power and associated sectors. The Government of India (GoI) holds 73.72% stake in PFC (as per the shareholding pattern as on 30 September 2013).

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