Power Finance shares forfeit initial gains on an increase in loans to Rs 1 lakh crore

Power Finance shares forfeit initial gains on an increase in loans to Rs 1 lakh crore

Power Finance shares forfeit initial gains on an increase in loans to Rs 1 lakh crore

An prior borrowing schedule for Rs 80,000 crore was in place for the current fiscal year, 2023–2024.

The previous six months have seen a 127.22% gain in PFC shares.

Power Finance Corporation shares lost their early gains on January 5 after starting higher than the market. This was due to the business raising its market borrowing program to Rs 1.05 lakh billion.

As of 10.18 am, the closing price of Power Finance's shares on the NSE for the previous session was Rs 405.3, a decrease of 0.11 percent.

The current fiscal year's borrowing program amounted to Rs 80,000 crore. There are several different debt categories under which borrowings occur, including public and private placements, bonds, debentures, term loans, and external commercial borrowings.

"During the financial year 2023–2024, funds under the aforementioned modified market borrowing program, shall be raised periodically, with the approval of the competent authority, in accordance with the powers assigned in this regard by the Board of Directors." In the information provided to the stock market, the business said.

On January 3, the Gujarati government and Power Finance Corporation inked a preliminary agreement for the latter's provision of all-inclusive financial assistance for the state's generating, transmission, and distribution projects.

This partnership is expected to fulfill long-term financing requirements as well as other essential finance needs for carrying out various projects around the state. According to the company's exchange filing, the MoU calls for an astounding Rs 25,000 crore in financial support, all of which will be used to power several projects around Gujarat.

PFC shares have increased by 127.22% during the last six months, more than tripling investors' returns.