Power Grid Corporation of India Limited (POWERGRID), the country's largest electric power transmission utility, has announced an ambitious plan to raise ₹30,000 crores through debt securities. This significant move, approved by the company's board of directors, underscores POWERGRID's commitment to bolstering its financial position and supporting its growth initiatives.

Key Highlights of the Fundraising Plan

• Fundraising Amount: POWERGRID aims to raise up to ₹30,000 crores.
• Instrument: The funds will be raised through various sources, including domestic bonds.
• Nature of Securities: The debt securities will be secured or unsecured, non-convertible, non-cumulative, redeemable, and taxable or tax-free.
• Issuance Method: The bonds will be issued under private placement.
• Timeline: The fundraising is planned for the Financial Year 2026-27.
• Flexibility: The company plans to raise the funds in one or more tranches or offers.

Enhanced Borrowing Limit for FY 2025-26

In addition to the ₹30,000 crore fundraising plan for FY 2026-27, POWERGRID's board has also approved an enhancement of the borrowing limit for the current financial year (2025-26):

• Increased Limit: The borrowing limit has been raised from ₹16,000 crore to ₹25,000 crore.
• Sources: This includes various funding avenues, with a focus on domestic bonds.
• Bond Characteristics: Similar to the FY 2026-27 plan, these bonds will be secured or unsecured, non-convertible, cumulative or non-cumulative, redeemable, and taxable or tax-free.

Financial Position and Market Impact

As of June 30, 2025, POWERGRID's financial position remains robust:

The company's strong financial metrics and the government's backing as a public sector enterprise are likely to make these debt securities attractive to investors.

Strategic Implications

This substantial fundraising initiative signals POWERGRID's intent to:

1. Expand Infrastructure: Invest in strengthening and expanding India's power transmission network.
2. Support Government Initiatives: Align with the government's push for enhancing the country's power infrastructure.
3. Optimize Capital Structure: Leverage low-cost debt to finance growth while maintaining a healthy balance sheet.

Conclusion

POWERGRID's ambitious ₹30,000 crore fundraising plan, coupled with the enhanced borrowing limit for the current fiscal year, demonstrates the company's proactive approach to capital management and its commitment to supporting India's growing power transmission needs. As the nation's premier power transmission utility, POWERGRID's financial strategies will likely have far-reaching implications for the Indian power sector and infrastructure development at large.

Investors and market watchers will be keenly observing how this significant capital infusion translates into operational expansion and financial performance in the coming years.

Power Grid Corporation of India Limited (POWERGRID), the state-owned electric utility company, has reported its financial results for Q1, along with several significant business approvals and expansions.

Financial Performance

POWERGRID's Board approved the unaudited financial results for Q1, reporting:

• Total income of ₹11,257.00 crore
• Net profit of ₹3,653.00 crore on a standalone basis

These figures represent a slight increase in total income compared to the previous year's Q1 result of ₹10,850.37 crore, and a growth in net profit from ₹3,412.15 crore in the same period last year.

Key Approvals and Business Expansions

The Board of Directors has approved several strategic initiatives:

1. Enhancement of the borrowing limit from ₹16,000.00 crore to ₹25,000.00 crore for FY2025-26.
2. Approval to raise funds up to ₹30,000.00 crore for FY2026-27.
3. In-principle approval for participation in up to two Tariff Based Competitive Bidding (TBCB) projects with an estimated cost of about ₹500.00 crore.
4. Formation of joint venture companies with Nepal Electricity Authority for implementing transmission interconnections between India and Nepal. POWERGRID will hold a 51% stake in the Indian JV and a 49% stake in the Nepalese JV.
5. Approval to exit from Parbati Koldam Transmission Company Limited.
6. Decision to wind up RINL POWERGRID TLT Private Limited.

Administrative Appointments

The company has appointed:

• Joint cost auditors for multiple years
• A secretarial auditor for multiple years

Shareholder Approval

Several of these approvals will require shareholder consent at the upcoming Annual General Meeting.

Future Outlook

These strategic initiatives, particularly the enhanced borrowing limits, fund-raising plans, and international joint ventures, suggest that POWERGRID is positioning itself for significant expansion and growth in the coming years. The company's focus on transmission projects and international collaborations could potentially drive its performance in future quarters.

Investors and analysts will likely closely monitor POWERGRID's progress in implementing these initiatives and their impact on the company's financial performance in the coming quarters.