Power Grid Corporation of India (PGCIL), a leading electric power transmission company, has announced plans to raise up to ₹6,000 crore through the issuance of bonds. This significant move, approved by the company's 'Committee of Directors for Bonds', marks a strategic financial initiative for the state-owned enterprise.

Bond Issuance Details

The company plans to issue unsecured, non-convertible, non-cumulative, redeemable, and taxable bonds, designated as POWERGRID Bonds-LXXXI (81st) Issue 2025-26. The bond issuance structure is as follows:

Key Features of the Bond Issue

• Listing: The bonds will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
• Tenure: The bonds are set to mature at the end of the 10th year, with interest payments scheduled on an annual basis.
• Security: These bonds will be unsecured.
• Coupon Rate: To be determined through bidding on the Electronic Book Provider (EBP) Platform.

Purpose and Implications

While the specific purpose of the fund-raising has not been explicitly stated, such large-scale capital raising typically indicates plans for significant investments. For a company like Power Grid, this could potentially be earmarked for infrastructure development, expansion of transmission networks, or refinancing existing debt.

Corporate Governance

The decision for this bond issuance was made during a meeting of the Committee of Directors for Bonds, which commenced at 11:15 a.m. and concluded at 11:40 a.m. on April 4, 2025. This swift decision-making process reflects the company's efficient corporate governance practices.

Market Impact

This substantial bond issuance by Power Grid Corporation, a key player in India's power sector , is likely to attract significant attention from institutional investors. It underscores the company's strong market position and its ability to raise large amounts of capital, which could be seen as a positive signal by the market.

The successful execution of this bond issuance could strengthen Power Grid's financial position, potentially enabling the company to undertake large-scale projects crucial for India's growing power transmission needs.

Power Grid Corporation of India Limited (POWERGRID) has made several significant announcements, showcasing its continued growth in the power transmission sector and its plans for raising capital.

Successful Bid Under Tariff-Based Competitive Bidding

POWERGRID has been declared the successful bidder under the Tariff-Based Competitive Bidding (TBCB) process for a crucial inter-state transmission system project in Madhya Pradesh. This achievement further solidifies POWERGRID's position as a leading player in India's power transmission sector.

Mahan Energen Transmission Project

The company secured the bid to establish the "Transmission System for evacuation of power from Mahan Energen Limited Generating Station in Madhya Pradesh" on a Build, Own, Operate and Transfer (BOOT) basis.

The project scope includes:

• Construction of a 400kV double circuit transmission line
• Associated bays at the existing Rewa PS (PG) sub-station in Madhya Pradesh

POWERGRID received the Letter of Intent (LoI) for this project on April 1, 2023, marking a significant addition to its portfolio of transmission assets.

Proposed Bond Issue

POWERGRID has announced plans for its 81st Non-Convertible Debenture (NCD) issue. The company's board of directors is scheduled to meet on April 4, 2023, to consider the issuance of unsecured, non-convertible, non-cumulative, redeemable, taxable bonds under private placement.

This bond issue, dubbed "POWERGRID Bond - LXXXI (81st) Issue," demonstrates the company's ongoing efforts to raise capital for its expansion and operational needs.

Conclusion

These announcements reflect POWERGRID's multifaceted strategy of expanding its transmission infrastructure while also ensuring robust financial planning to support its growth initiatives.

As India's leading power transmission company, POWERGRID continues to play a crucial role in strengthening the country's power grid infrastructure, facilitating efficient power evacuation from generating stations, and contributing to the overall development of the power sector.

Investors and stakeholders will be closely watching the outcome of the upcoming board meeting, as it may provide further insights into the company's financial strategies and future plans.