Mr. Satnam Singh, Chairman and Managing Director, Power Finance Corporation holds a Bachelor’s degree in Commerce from Guru Nanak Dev University, Amritsar and a Master’s degree in Finance and Marketing from the University Business School, Chandigarh. Satnam Singh has about 30 years of varied experience in power and financial sector. He had extensive exposure to power generation companies such as NTPC and Nathpa Jhakri Power Corporation Limited (renamed Satluj Jal Vidyut Nigam Limited) before joining PFC.
Power Finance Corporation was set up in July 1986 as a Financial Institution (FI) dedicated to Power Sector financing and committed to the integrated development of the power and associated sectors. The Corporation was notified as a Public Financial Institution in 1990 under Companies Act, 1956. The Corporation was registered as a Non Banking Financial Company by RBI and has been conferred with the status of Nav-Ratna PSU by Govt. of India on 22nd June, 2007. The company is providing large range of Financial Products and Services like Project Term Loan, Lease Financing, Direct Discounting of Bills, Short Term Loan, Consultancy Services etc.for various Power projects in Generation, Transmission, Distribution sector as well as for Renovation & Modernisation of existing power projects.
Yash Ved of IIFL provides the highlights of a media interaction where Satnam Singh says "The company needs to raise additional capital via a follow-on offer (FPO) and has already requested for board and shareholders approval."
How much are you raising via Follow-on-Public offer?
The company needs to raise additional capital via a follow-on offer (FPO) and has already requested for board and shareholders approval.
We are planning to raise up to 20% of the existing capital and existing capital is Rs 11.47bn.
We shall come with an FPO either on last quarter of this financial year or beginning of next financial year.
Brief us about your expansion plans?
The company has already invited requests for qualification in Chattisgarh and Orissa and will invite requests for qualification (RFQ) for two more such projects in Tamil Nadu and Andhra Pradesh
The company has entered into MOU with NPCIL for facilitating the large capacity addition programme of NPCIL to set up nuclear power projects.
The company has raised US$240mn External Commercial Borrowings in September 2010 and plans to raise another US$260mn.
The company is working on 16 Ultra Mega Power Projects as against 9 power projects. It is also planning to explore possibilities of. expanding and diversifying its business.
We have crossed loan sanction of Rs300bn and loan disbursements of Rs.1.5 lakh crore.
Any fund raising plans?
The company is planning to raise Rs. 280bn for FY10-11 and has already raised Rs. 150bn.
Are you planning to launch infrastructure bonds?
We are planning to raise up to Rs12-15bn through tax-free infrastructure bonds by March.2011.
Brief us about your financials?
Power Finance Corporation Ltd. (PFC) has posted a net profit of Rs 7bn for the quarter ended September 30, 2010 as against Rs 6.38bn for the same quarter last year. Total income for the reporting quarter has increased to Rs 25.38bn from Rs 20.46bn for the quarter ended September 30, 2009.
Are you planning to set up new subsidiary?
We are planning to set up subsidiary called PFC Green energy Ltd and seeking board approval.
What are your current loan assets?
Currently loan assets are at Rs879.06bn.