MoP - Ministry of Power

4.0 PERFORMANCE HIGHLIGHTS
4.1 PFC has been a profit-making enterprise right since
inception and has registered impressive growth in its
net profit every year. It posted a net profit of Rs.986
crores during the financial year 2006-07. As on 30th
Nov, 2007, PFC had sanctioned loans of the order of
Rs. 36,363 crore (during FY 2007-08) for a wide range
of power projects in various parts of the country and
disbursements were to the tune of Rs. 8,074 crore.
4.2 PFC has consistently maintained a high rate of
recovery of more than 95%. In FY 2006-07, the
recovery rate of the principal amount works out to be
99.47%, and the overall recovery rate was 97.27%. In
FY 2007-08 as on 31 st Oct 2007, recovery rate of the
principal amount is 98.35%, and the overall recovery
rate is 95.50%.
4.3 In the FY 2006-07, PFC had paid a dividend of
Rs. 259.78 crore to Government of India.
4.4 A glance of PFC’s financial performance for the past 3
years, is as under:
(Rs. crore)
2004-05 2005-06 2006-07
Sanctions 18,573 22,502 31,146
Disbursements 9,409 11,681 14,055
Profit before tax 1,396 1,265 1,512
Profit after tax 984 971 986
Dividend 385 361.53 259.78
5.0 OPERATIONAL HIGHLIGHTS
The Company issued Sanctions for Rs.36,363 crore of
loans and grants during the financial year 2007-08 upto
30 th Nov. 2007 compared to Rs.20,453 crore Sanctioned
during the last year. An amount of Rs.8,074 crore was
Disbursed during the same period to State, Central and
Private Sector entities, compared to Rs.8,119 crore
Disbursed during similar period last year. With this,
cumulative Sanction of Rs.1,56,322 crore and
Disbursement of Rs.83,928 crore of loans and grants have
been made by the Company as on 30.11.2007, apart from
Sanction of Guarantees worth Rs.1,380 crore
6.0 INITIAL PUBLIC OFFERING (IPO) OF SHARES
During the 4th quarter of FY 2006-07, PFC made an Initial
Public Offering (IPO) of 11,73,16,700 fresh equity shares
of Rs.10/- each through 100% book building process with
price band of Rs.73-85 per share. Total fresh capital raised
through the IPO was Rs.997.19 crore.
The issue got a phenomenal response and was subscribed
77.16 times. The QIB portion got subscribed 137.17 times,
Non-Institutional portion 48.81 times, Retail portion 8.54
times and Employees category 1.15 times. The total number
of applications received were 6,24,609. The Company’s
shares got listed on NSE and BSE on 23 rd February, 2007.
Post-issue, the holding of the Government of India stands
reduced from 100% to 89.78% of the paid up equity capital
and the balance is held by various investors.
The issued and paid-up share capital increased from
Rs.1,030.45 crore to Rs.1,147.77 crore and an amount of
Rs.851.09 crore (net of issue expenses) was credited to
Securities Premium Account. The proceeds of the issue
Dr. V.K. Garg, CMD, PFC receiving the prestigious “Golden Peacock Award for Excellence in Corporate Governance” (National Award category)
for the year 2007 from Mr. Ola Ullsten, former Prime Minister of Sweden and the Chairman of the Golden Peacock Global Awards jury at the
DTI Conference Centre in London on 20.9.07
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