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PFC bonds over-subscribed 2.5 times within three days
The Tax free bonds issued by the Power Finance Corporation (PFC)'s on December 30 are an instant hit with the investors as the bond issue of Rs 4,033 crore have been over-subscribed 2.5 times. The power sector lender received subscriptions worth Rs 9,791 crore within three days since the opening of the issue.
The qualified institutional investor (QII) and high net worth individual (HNI) categories have been over-subscribed with 3.6 times over-subscription in the QII segment and 2.5 times over-subscription in the HNI segment. However, the retail investor segment has not been fully subscribed, with only 34-35 per cent of the total amount allotted being subscribed till now.
The company received applications worth Rs 7,118 crore as against Rs 2,016 crore reserved for the qualified institutional placement category. The issue was also over-subscribed in the HNI segment and the applications received stood at Rs 2,397 crore as against Rs 1,008 crore reserved for the category.
However, the applications received in the retail segment amounted to Rs 277 crore as against Rs 1,008 crore reserved for the retail investors. Fifty per cent of the issue is reserved for institutional investors and 25 per cent each for HNIs and retail investors. The bonds are rated 'AAA' by ICRA and Crisil.
The power sector lender raised Rs 966.87 crore in the first tranche through private placement on September 28 and November 1. The Company has been allowed to raise up to Rs 5,000 crore by the Government in 2011-12. The second tranche of PFC's tax-free bond issue opened on December 30. The size of the issue is Rs 1,000 crore, with an option to allot shares worth Rs 3,033 crore in case of oversubscription, taking the issue size to Rs 4,033 crore.
According to a senior company official, the awareness amongst the retails investors regarding the bonds is still low but the subscription in the retail segment will go on till the last moment. "The retail investors, despite advertising are not fully aware of the product. However, the subscriptions in the retail segment generally go on till the last moment, so, we are hopeful that the segment will be fully subscribed in a few days." The official told The Pioneer.
Other infrastructure companies that have secured the Government's approval to raise money include IRFC and Hudco.
The Tax free bonds issued by the Power Finance Corporation (PFC)'s on December 30 are an instant hit with the investors as the bond issue of Rs 4,033 crore have been over-subscribed 2.5 times. The power sector lender received subscriptions worth Rs 9,791 crore within three days since the opening of the issue.
The qualified institutional investor (QII) and high net worth individual (HNI) categories have been over-subscribed with 3.6 times over-subscription in the QII segment and 2.5 times over-subscription in the HNI segment. However, the retail investor segment has not been fully subscribed, with only 34-35 per cent of the total amount allotted being subscribed till now.
The company received applications worth Rs 7,118 crore as against Rs 2,016 crore reserved for the qualified institutional placement category. The issue was also over-subscribed in the HNI segment and the applications received stood at Rs 2,397 crore as against Rs 1,008 crore reserved for the category.
However, the applications received in the retail segment amounted to Rs 277 crore as against Rs 1,008 crore reserved for the retail investors. Fifty per cent of the issue is reserved for institutional investors and 25 per cent each for HNIs and retail investors. The bonds are rated 'AAA' by ICRA and Crisil.
The power sector lender raised Rs 966.87 crore in the first tranche through private placement on September 28 and November 1. The Company has been allowed to raise up to Rs 5,000 crore by the Government in 2011-12. The second tranche of PFC's tax-free bond issue opened on December 30. The size of the issue is Rs 1,000 crore, with an option to allot shares worth Rs 3,033 crore in case of oversubscription, taking the issue size to Rs 4,033 crore.
According to a senior company official, the awareness amongst the retails investors regarding the bonds is still low but the subscription in the retail segment will go on till the last moment. "The retail investors, despite advertising are not fully aware of the product. However, the subscriptions in the retail segment generally go on till the last moment, so, we are hopeful that the segment will be fully subscribed in a few days." The official told The Pioneer.
Other infrastructure companies that have secured the Government's approval to raise money include IRFC and Hudco.
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