PFC surges 9% on incorporating SPV to manage power ministry projects

Power Finance Corporation Ltd (PFC) shares surged more than 9 percent on December 1 following the announcement that its wholly-owned subsidiary, PFC Consulting, has established a special purpose vehicle (SPV) named Paradeep Transmission.

The move comes after PFC Consulting Limited was designated as the “bid process coordinator” (BPC) for the selection of developers through tariff-based competitive bidding for Independent Transmission Projects (ITPs) by the power ministry.

“As per the provisions of tariff-based competitive bidding guidelines issued by the Ministry of Power, the BPC has to prepare the project profile and initiate the process of land acquisition and forest clearance, if required. For these activities, a Special Purpose Vehicle (SPY) is required to be incorporated which will take up various preparatory activities of the transmission projects,” PFC said in its exchange filing.

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The preparatory activities of the transmission projects include survey and preparation of reports, initialisation of the process of land acquisition and also initiate the process of seeking forest clearance, if required. This SPV will be transferred to the successful bidder after the completion of the bidding process.

The successful bidder selected through the bidding process would develop the project, the exchange filing stated.

At 12.50 pm, PFC was trading 9.4 percent higher at Rs 366.80 on the National Stock Exchange (NSE). The stock has zoomed around 205 percent this year, outperforming the Nifty which has risen 11 percent during this period.

Total traded volume, so far, stood at 3 crore shares on BSE and NSE combined compared to the one-week average of 2 crore.

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