Power Finance Corporation (PFC) witnessed a notable surge in its shares by nearly one percent during early trade on January 10, following the pivotal approval from the Reserve Bank of India (RBI) to establish a finance company within Gujarat’s GIFT City’s International Financial Services Centre (IFSC).
At 9:15 am, PFC shares were trading at Rs 396 on the National Stock Exchange, signaling investor enthusiasm post the RBI’s green light.
In an exchange filing, PFC revealed the RBI’s issuance of a no-objection letter for the setup of a finance company in GIFT City. The move is projected to usher in fresh business prospects and bolster PFC’s global presence, according to the company’s statement in the filing.
Chairman and Managing Director Parminder Chopra expressed optimism, citing the IFSC entity as an avenue for new opportunities and growth catalyst for the nation’s power sector. PFC’s strategic entry into the IFSC aligns with its broader objective to tap into the global market while contributing to the growth trajectory of India’s infrastructure landscape.
“The GIFT City platform provides a conducive environment for international lending activities and a world-class infrastructure. We are confident that PFC will leverage these advantages to carve a niche for itself in the global market,” said Chopra, highlighting the favorable environment within the IFSC for international financial activities.
The regulatory filing emphasized the potential of PFC’s foray into the IFSC, marking it as a significant move expected to unlock avenues for new businesses while fortifying its global footprint. PFC, operating as an infrastructure finance company under the Power Ministry, aims to harness the benefits of the IFSC framework to bolster its position in the global financial arena.
This approval aligns with PFC’s recent engagements, having inked an initial agreement with the Gujarat government to extend comprehensive financial support for the state’s power generation, transmission, and distribution projects.
PFC’s trajectory has seen remarkable growth, boasting a return of 118.68 percent over the last six months, significantly outperforming Nifty’s growth at 11.31 percent.
With the RBI’s affirmative nod, PFC’s entry into GIFT City stands poised to be a significant milestone, positioning the corporation as a pivotal player in the global financial landscape while contributing to the country’s infrastructural growth.
