Power Grid Corporation of India Limited (POWERGRID) has announced the approval for raising ₹4,250 crore through bonds on a private placement basis, marking a significant move to support its financial requirements for upcoming infrastructure and operational projects. The decision was finalized during the Committee of Directors for Bonds meeting held on December 18, 2024.
Detailed Overview of the Bond Issue:
- Issue Size: The total issue size comprises a base issue of ₹1,000 crore with an additional ₹3,250 crore under the green shoe option, providing flexibility to meet investor demand.
- Listing: The bonds will be listed on both BSE and NSE, ensuring transparency and accessibility for potential investors.
- Tenure: These bonds carry a 10-year tenure, and the interest will be paid on a yearly basis.
- Security: The bonds are unsecured, meaning no assets have been pledged as collateral.
- Redemption: The bonds will be redeemable at par at the end of 10 years.
This bond issuance reflects POWERGRID’s continued efforts to strengthen its financial position and ensure long-term funding for its large-scale infrastructure projects. The funds raised are expected to be utilized to support expansion, maintenance, and operational efficiency across its vast transmission network.
With a robust reputation as India’s leading power transmission company, POWERGRID has been a critical player in improving the country’s energy infrastructure. This bond issue also offers investors a reliable and long-term opportunity, underlining the company’s financial stability and growth prospects.
The meeting, which commenced at 12:00 Noon and concluded at 12:20 PM, highlights the company’s strategic vision to align its capital-raising plans with its operational goals to meet India’s increasing power demands effectively.
