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Shares of PFC gain after its arm incorporates a wholly-owned subsidiary

07 December 20233 mins read by Angel One
PFC Consulting has been appointed as the Bid Process Coordinator by the Indian Ministry of Power to select developers for Independent Transmission Projects.
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About the project 

Power Finance Corporation’s (PFC) wholly-owned subsidiary — PFC Consulting (PFCCL) has incorporated a Special Purpose Vehicle (SPV) as its wholly-owned subsidiary (WOS) namely Gola B – Ramgarh B Transmission for developing the Intra-State transmission system consisting of i) 400/220/132/33 KV SS at Gola-B along with associated transmission lines and (ii) 220/33 KV SS at Ramgarh along with associated transmission line under Package -B (Jharkhand) for Damodar Valley Corporation (DVC).

PFC Consulting has been nominated as the Bid Process Coordinator (BPC) for the selection of developers through tariff-based competitive bidding for the Independent Transmission Projects (ITPs) by the Ministry of Power, Government of India.

The Ministry of Power’s tariff-based competitive bidding guidelines mandate that the BPC prepares project profiles, initiates land acquisition and forest clearance processes, and incorporates a Special Purpose Vehicle (SPV) for these activities. The SPV will handle preparatory tasks for transmission projects, including survey reports, forest initialization, land acquisition, and clearance if necessary. The SPV must be transferred to the successful bidder selected through the International Competitive Bidding Process under the Ministry of Power’s Tariff-Based Competitive Bidding Guidelines for Transmission Service.

Share price movement 

Power Finance Corporation is currently trading at Rs 378.40, up by 1.20 points or 0.32% from its previous closing of Rs 377.20 on the BSE. The scrip opened at Rs 377.55 and has touched a high and low of Rs 387.85 and Rs 375.75 respectively. So far 47,2743 shares have been traded on the counter.

The BSE group ‘A’ stock of face value of Rs 10 has touched a 52-week high of Rs 387.85 and a 52-week low of Rs 104.16. Last one week high and low of the scrip stood at Rs 387.85 and Rs 325.85 respectively. The current market cap of the company is Rs 1,25,024.36 crore. The promoters holding in the company stood at 55.99%, while Institutions and Non-Institutions held 34.77% and 9.23% respectively.

About the company

Power Finance Corporation (PFC) is a leading Non-Banking Financial Corporation in India, incorporated on July 16, 1986. It is under the administrative control of the Ministry of Power and was granted the title of a Navratna CPSE in June 2007. It plays a crucial role in India’s rise as a global player, as energy usage is increasingly measured. The company provides financial assistance to Power Utilities to meet financing and development requirements, raising funds through bonds, term loans from banks/FIs, and ECBs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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