PFC Pays Rs. 2,033 Crores to the Government of India – Highest-Ever Interim Dividend

Power Finance Corporation Ltd. (PFC), a stalwart in the power sector and a Maharatna Central Public Sector Enterprise, recently made headlines by paying out a staggering Rs. 2,033 crores as an interim dividend to the Government of India. This hefty payout, marking the third interim dividend for the financial year 2023-24, further solidifies PFC’s position as the leading Non-Banking Financial Company (NBFC) in the power domain.

A Generous Gesture: PFC’s Interim Dividend

In a significant financial move, PFC disbursed Rs. 554 crores to the Government of India as the third interim dividend, following the initial interim dividend of Rs. 832 crores and the subsequent Rs. 647 crores paid earlier in the financial year. This sumptuous dividend, amounting to Rs. 3 per equity share of face value Rs. 10 each, was declared by the Board of Directors during their meeting on March 11, 2024.

Recognition and Presentation

The Real Time Gross Settlement (RTGS) intimation advice for the interim dividend was ceremoniously presented to Shri R.K. Singh, Union Minister for Power and New & Renewable Energy, and Shri Pankaj Agarwal, Secretary of the Ministry of Power, by PFC’s CMD, Smt. Parminder Chopra, in New Delhi on April 3, 2024. The occasion was also graced by the presence of Shri Rajiv Ranjan Jha, Director (Projects), and Shri Manoj Sharma, Director (Commercial), from PFC.

Setting New Records

With this latest payout, the total interim dividends dispersed by PFC to its shareholders for the fiscal year 2023-24 soar to an impressive Rs. 3,630 crores, marking a remarkable 110% dividend of Rs. 11 per equity share of the face value of Rs. 10 each. Notably, this is the highest-ever interim dividend disbursed by PFC, underscoring the company’s commitment to rewarding its stakeholders.

Stakeholder Landscape and Future Outlook

PFC’s shareholder landscape paints a diverse picture, with the President of India holding a substantial 55.99% stake in the company, while Domestic Institutional Investors (DIIs) and Foreign Institutional Investors (FIIs) hold about 17.47% and 17.85% stakes respectively. As of December 2023, PFC boasts an impressive 5,97,315 shareholders.

Looking ahead, PFC is optimistic about sustaining a growth rate of approximately 15% in the long term, with a strategic focus on renewable energy and infrastructure sectors. Despite evolving market dynamics, the company anticipates maintaining a similar market share in the power sector financing industry, reflecting its resilience and adaptability.

In conclusion, PFC’s record-breaking interim dividend not only highlights its financial prowess but also underscores its unwavering commitment to delivering value to its stakeholders while charting a path towards sustainable growth and innovation in the power sector.

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.