RED HERRING PROSPECTUS Please read Section 60B of the Companies Act, 1956 Book Built Issue Dated April 25, 2011 POWER FINANCE CORPORATION LIMITED Our Company was incorporated in New Delhi on July 16, 1986 under the Companies Act, 1956, as amended (the “Companies Act”), as a public limited company. Registered Office: ‘Urjanidhi’, 1, Barakhamba Lane, Connaught Place, New Delhi 110 001, India Tel: +91 (11) 2345 6000 Fax: +91 (11) 2341 2545 For information on change in the registered office of our Company, see section titled “History and Certain Corporate Matters” on page 133. Company Secretary and Compliance Officer: Mr. J.S. Amitabh Tel: +91 (11) 2345 6740 Fax: +91 (11) 2345 6786 E-mail:
[email protected]: www.pfcindia.com. PROMOTER : PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA FURTHER PUBLIC ISSUE OF 229,553,340 EQUITY SHARES OF FACE VALUE OF ` 10 EACH (“EQUITY SHARES”) OF POWER FINANCE CORPORATION LIMITED (“POWER FINANCE”, “OUR COMPANY” OR “THE ISSUER”) FOR CASH AT A PRICE OF ` [•] PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF ` [•] PER EQUITY SHARE) AGGREGATING ` [•] MILLION* (THE “ISSUE”). THE ISSUE COMPRISES A FRESH ISSUE OF 172,165,005 EQUITY SHARES BY OUR COMPANY (THE “FRESH ISSUE”) AND AN OFFER FOR SALE OF 57,388,335 EQUITY SHARES BY THE PRESIDENT OF INDIA ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA (THE “SELLING SHAREHOLDER”) (THE “OFFER FOR SALE”). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 229,277,876 EQUITY SHARES (THE “NET ISSUE”) AND A RESERVATION OF NOT MORE THAN 275,464 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (AS DEFINED HEREIN) (THE “EMPLOYEE RESERVATION PORTION”).