Power Grid Corporation to Raise Up to ₹6,000 Crore Through Bond Issuance
Power Grid Corporation of India Limited (PGCIL) has announced plans to raise up to ₹6,000 crore through the issuance of unsecured, non-convertible bonds. The POWERGRID Bonds-LXXXI (81st) Issue 2025-26 will have a base issue size of ₹1,500 crore with a green shoe option of ₹4,500 crore. The 10-year bonds will be listed on BSE and NSE, with annual interest payments. The coupon rate will be determined through bidding on the Electronic Book Provider Platform.

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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:
Particulars | Amount (in ₹ Crore) |
---|---|
Base Issue Size | 1,500.00 |
Green Shoe Option | 4,500.00 |
Total Issue Size | 6,000.00 |
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.
Historical Stock Returns for Power Grid Corporation of India
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+1.06% | +1.61% | +15.58% | -6.69% | +10.32% | +227.47% |