NewsCorporate ActionsPower Grid Corp of India Approves ₹3,800 Crore Bond Issue for Capital FundingPower Grid Corp of India Approves ₹3,800 Crore Bond Issue for Capital Funding
Power Grid Corporation of India Limited (POWERGRID) has approved raising up to ₹3,800 crore through a private placement of bonds. The POWERGRID Bonds - LXXXIII (83rd) Issue 2025-26 includes a base issue size of ₹1,000 crore with a green shoe option of ₹2,800 crore. The bonds are unsecured, non-convertible, non-cumulative, redeemable, and taxable, with a 10-year tenure. They will be redeemed in 10 equal annual installments with yearly interest payments and will be listed on BSE and NSE.
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Power Grid Corporation of India Limited (POWERGRID), a state-run transmission utility, has taken a significant step towards funding its capital expenditure and long-term projects. The company's board committee has approved raising up to ₹3,800 crore through a private placement of bonds, demonstrating its commitment to infrastructure development and financial prudence.
Bond Issue Details
The approved bond issue, designated as POWERGRID Bonds - LXXXIII (83rd) Issue 2025-26, comes with the following structure:
| Particulars | Details |
|---|---|
| Base Issue Size | ₹1,000 crore |
| Green Shoe Option | ₹2,800 crore |
| Total Issue Size | ₹3,800 crore |
| Bond Type | Unsecured, Non-convertible, Non-cumulative, Redeemable, Taxable |
| Tenure | 10 years |
| Redemption | 10 equal annual installments |
| Interest Payment | Yearly basis |
| Listing | To be listed on BSE and NSE |
Key Points of the Bond Issue
Flexible Funding: The bond issue's structure, with a base size of ₹1,000 crore and a substantial green shoe option of ₹2,800 crore, provides POWERGRID with flexibility in its fundraising efforts.
Long-Term Financing: The 10-year tenure of the bonds aligns with the company's focus on long-term projects and capital expenditure needs.
Investor-Friendly Structure: The bonds offer annual interest payments and redemption in equal installments, which may appeal to a wide range of investors seeking regular income and capital return.
Market Accessibility: By listing the bonds on both BSE and NSE, POWERGRID ensures liquidity and ease of trading for bondholders.
Implications for POWERGRID
This bond issue is a strategic move by POWERGRID to secure long-term funding for its ongoing and future projects. As a key player in India's power transmission sector, the company's ability to raise substantial capital through bonds indicates investor confidence in its financial health and growth prospects.
The unsecured nature of the bonds also suggests that POWERGRID has a strong balance sheet, allowing it to borrow without pledging specific assets as collateral.
Conclusion
POWERGRID's decision to raise up to ₹3,800 crore through bond issuance reflects its proactive approach to capital management and long-term financial planning. As the company continues to play a crucial role in India's power infrastructure development, this funding will likely support its expansion plans and contribute to the growth of the nation's electricity transmission network.
Investors and market watchers will be keen to observe the response to this bond issue, as it may serve as an indicator of market sentiment towards India's power sector and state-run enterprises in general.
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