Power Grid to raise up to Rs 6,000 crore bond through private placement
Apr 04, 2025
New Delhi [India], April 4 : Power Grid Corporation of India Ltd (POWERGRID) on Friday informed the stock exchanges that it plans to raise funds through a new bond issue.
The company announced the launch of its 81st bond issue, named POWERGRID Bonds-LXXXI (81st) Issue 2025-26. These bonds will be raised on a private placement basis and will be unsecured, non-convertible, non-cumulative, redeemable, and taxable.
It said "the 'Committee of Directors for Bonds' in their meeting held today i.e. on 04th April, 2025, has approved the raising of Bonds as Unsecured, Non-convertible, Non-cumulative, Redeemable, Taxable POWERGRID Bonds-LXXXI (81st) Issue 2025-26 (for an amount upto Rs. 6,000 Crore) on Private Placement"
According to the company, the total issue size is up to Rs 6,000 crore. This includes a base issue size of Rs 1,500 crore with a green shoe option of an additional Rs 4,500 crore. The green shoe option allows the company to raise more funds than the base amount if there is higher demand from investors.
The bonds will have a tenure of 10 years and will be redeemable at par at the end of this period. Investors will receive interest payments every year during the term of the bond.
This move is part of POWERGRID's regular fundraising activities to support its ongoing and upcoming projects. The company is one of India's largest power transmission utilities and is responsible for transmitting over half of the electricity generated in the country.
The bond issue is expected to attract interest from long-term investors looking for steady returns from a government-owned enterprise.
At the time of filing this report, the share of the Power Grid Corporation of India was trading at Rs 297 on the National Stock Exchange.
