Power Finance Corp share price jumps 4% today, up 7% in five sessions; Should you buy or sell?

Power Finance Corporation share price jumped over 4 per cent on Monday, March 24 after the company announced it has incorporated two of its special purpose vehicle (SPV) companies as wholly-owned subsidiaries of PFC Consulting Ltd.

At 11:20 am, Power Finance shares were trading at ₹424.85 apiece on Monday. The stock has gained nearly 7 per cent in past five trading sessions.

In a regulatory filing, PFC stated that the SPV companies would include NES Dharashiv Transmission Limited and NES Navi Mumbai Transmission Limited.

According to the filing, NES Dharashiv Transmission is being established to develop a transmission network in Maharashtra, facilitating the evacuation of renewable energy from Dharashiv and Beed districts.

Meanwhile, NES Navi Mumbai Transmission Ltd has been incorporated to implement a transmission scheme aimed at supplying energy to data center loads in Mumbai.

In a letter of intent dated January 17, 2025, the Maharashtra State Electricity Transmission Company Limited (MSETCL) designated PFC Consulting as the Bid Process Coordinator (BPC).

As a result, PFC Consulting Ltd (PFCCL) will manage the bidding process to identify a private entity for the development of the specified transmission network projects in Maharashtra.

Additionally, upon completion of the bidding process, the two Special Purpose Vehicles (SPVs) will be handed over to the successful bidder.

“Accordingly, the above SPVs have been incorporated as wholly owned subsidiaries of PFCCL to develop the aforementioned transmission scheme. These SPVs 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 PSU said.

Additionally, PFC Chairman and Managing Director (CMD) Parminder Chopra has been assigned the additional responsibility of REC's CMD with immediate effect, according to another regulatory filing.

REC, operating under the same ministry, is a non-banking financial company (NBFC) specializing in financing the power sector in India.

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