Power Grid Corporation of India Limited (POWERGRID), a leading electric power transmission company, has announced a significant move in its fundraising efforts. The company's board has approved raising up to Rs 3,800 crore through the issuance of bonds, demonstrating its commitment to securing additional capital for operations and potential expansion activities.

Bond Issue Details

The 'Committee of Directors for Bonds' met on November 17, 2025, and approved the issuance of bonds under the following terms:

Key Features of the Bond Issue

• Security: The bonds will be unsecured, indicating they are not backed by any specific assets of the company.
• Redemption: The bonds are structured to be redeemed at par in 10 equal annual installments.
• Coupon Rate: The interest rate will be determined after the bidding process on the Electronic Book Provider (EBP) Platform.
• Special Rights: No special rights or privileges are attached to these bonds.

Implications for the Company

This bond issue represents a strategic financial move for POWERGRID. By raising substantial funds through this method, the company aims to strengthen its capital base, which could be utilized for various purposes such as:

1. Funding ongoing projects
2. Expanding transmission infrastructure
3. Modernizing existing assets
4. Meeting working capital requirements

Market Impact

The announcement of this substantial bond issue may have implications for POWERGRID's stock performance and investor sentiment. It demonstrates the company's proactive approach to capital management and its ability to access debt markets for funding needs.

As the power sector continues to evolve, particularly with the increasing focus on renewable energy integration, POWERGRID's move to bolster its financial resources could be seen as a strategic step to maintain its competitive edge and support future growth initiatives.

Power Grid Corporation of India , India's flagship power transmission utility, reported a relatively flat revenue growth for the first half of the fiscal year, despite capitalizing Rs 4,587 crores worth of projects. The company's financial performance reflects the complex dynamics of its business model and the challenges faced in project execution.

Financial Highlights

For the first half of the fiscal year, PowerGrid reported:

The company's debt-to-equity ratio stands at 58:42, indicating a balanced capital structure.

Project Execution and Capitalization

PowerGrid capitalized Rs 4,587.00 crores worth of projects in the first half of the fiscal year, compared to Rs 4,006.00 crores in the previous year. However, the revenue remained relatively flat due to older projects completing their 12-year depreciation cycle, which reduced revenue by approximately 9% from depreciation and interest components.

Challenges and Outlook

The company faces challenges with right-of-way acquisition delays, which have impacted project timelines. However, PowerGrid expects to commission Rs 20,000.00 crores worth of projects by the end of the fiscal year. The company has a substantial project pipeline, with works in hand worth Rs 1,52,000.00 crores, of which Rs 1,03,000.00 crores are from Tariff Based Competitive Bidding (TBCB) projects.

Future Investments and Growth

PowerGrid has outlined an ambitious capital expenditure plan:

• Current fiscal year: Rs 28,000.00 crores
• Next fiscal year: Rs 35,000.00 crores
• Following fiscal year: Rs 45,000.00 crores

This increasing trend in capital expenditure indicates the company's commitment to expanding its transmission network and capitalizing on the growing demand in the power sector.

Equipment Supply Constraints

The company acknowledges supply constraints for transformers and HVDC equipment, with delivery times exceeding one year for transformers. To mitigate this, PowerGrid is procuring transformers and reactors well in advance through bulk procurement.

New Opportunities

PowerGrid is exploring opportunities in battery energy storage systems and has participated in tenders, although it has not secured any projects yet. The company is also venturing into the data center business, with a 1,000-rack facility expected to be commissioned by Q4 of the current fiscal year.

Regulatory and Policy Updates

The government has issued new guidelines for land compensation rates, potentially easing right-of-way issues. The process of finalizing land valuations is expected to take about a month, which may help expedite project executions in the future.

Despite the challenges, PowerGrid remains committed to executing its project pipeline and maintaining its position as a key player in India's power transmission sector. The company's focus on diversification into areas such as smart metering and data centers, coupled with its robust capital expenditure plans, suggests a strategic approach to long-term growth in the evolving energy landscape.