PFC Dividend: Maharatna PSU Announces Fourth Interim Payout of ₹3.50 Per Share

Maharatna PSU stock Power Finance Corporation (PFC) announced on Wednesday its fourth interim dividend of ₹3.50 per share on the paid-up equity shares with a face value of ₹10 each for the financial year 2024-25.

At 2:00 PM, PFC stock price was trading at ₹393.60 per share on the NSE.

According to the company's regulatory filing, the fourth interim dividend of ₹3.50 per share (subject to TDS deduction) has been approved. Additionally, March 19, 2025, has been set as the record date to determine shareholders eligible for the dividend.

"It is to inform that March 19, 2025 (Wednesday) shall be considered the 'Record Date' for determining shareholders eligible to receive the fourth interim dividend for FY 2024-25," the company stated.

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PFC’s Fundraising Plan for FY 2025-26

Alongside the dividend declaration, PFC’s board has also approved a fundraising plan for FY 2025-26. The company intends to raise capital through multiple financial instruments, including bonds, term loans, and commercial papers, from both domestic and international markets.

This initiative aims to strengthen PFC’s financial position, allowing it to support more power sector projects and improve its market presence, while also creating investment opportunities in energy infrastructure development.

Strategic Importance of Fundraising

PFC plays a pivotal role in financing India's power and energy sector, and its ability to secure fresh funds is crucial for maintaining a steady flow of capital into infrastructure projects. The new borrowing program will enable the company to expand its lending capacity and support upcoming power sector projects, including renewable energy initiatives.

Given India's focus on energy transition and sustainability, PFC's financial strategy aligns with government goals to accelerate clean energy adoption. With the increasing demand for solar, wind, and hybrid power projects, PFC’s ability to mobilize capital effectively will be instrumental in meeting the nation's energy needs.

PFC Dividend History & Performance

On March 9, 2025, PFC had announced that its board meeting on March 12 would consider both the fundraising proposal and the fourth interim dividend declaration.

So far, for FY 2024-25, PFC has declared a total dividend of ₹12.75 per share, reflecting an estimated dividend yield of approximately 3.45%.

• The previous interim dividend of ₹3.50 per share had a record date of February 28, 2025.
• Earlier, ₹3.50 per share was announced on November 25, 2024, while an interim dividend of ₹3.25 per share was declared on August 30, 2024.
• A final dividend of ₹2.50 per share for FY 2023-24 was declared on July 26, 2024.
   

Stock Market Reaction & Investor Sentiment

Despite the dividend announcement and fundraising plans, PFC’s stock price fell 1.45% during Wednesday’s trading session. The decline suggests that broader market trends and sectoral movements may have influenced investor sentiment.

However, PFC remains a key player in India's power sector, with its consistent dividend payouts making it an attractive choice for long-term investors and income-focused portfolios. The company’s ability to maintain strong financials while expanding its market reach is expected to bolster its position in the coming quarters.

Industry analysts suggest that PFC’s continued support for infrastructure projects and its strong fundamentals could lead to potential upside in its share price, particularly as demand for energy financing remains robust.

With India's energy landscape evolving, PFC’s strategic decisions—such as dividend distributions and fundraising efforts—will play a crucial role in shaping the power sector’s growth trajectory while benefiting stakeholders and investors alike.