State-run Power Finance Corporation’s Rs 5,000 crore taxable non-convertible debentures (NCDs) issue was subscribed close to nine times on Monday and closed for subscription 11 days ahead of the schedule, according to the BSE data.
Power Finance Corporation (PFC) has planned to raise Rs 10,000 crore through bonds in two tranches.
The first tranche of Rs 5,000 crore, including Rs 4,500 crore green-shoe option, opened for subscription on Friday (January 15) and was scheduled to close on January 29. But the issue had to be closed on Monday, the second day of trading, due to over-subscription on BSE.
According to the BSE data, subscribers applied for 4,47,76,348 bonds or NCDs of Rs 1,000 each against 50 lakh bonds on the offer (with 4.5 crore NCDs under green-shoe option) on the offer.
Thus, the PFC received subscription worth Rs 4,477.63 crore against Rs 500 crore base issue size of NCDs on offer (with green-shoe option of Rs 4,500 crore).
The overwhelming response to the bond issue is expected to encourage the firm to come out with the second bond issue of Rs 5,000 crore during the current financial year, a source said.