Power Grid to Raise ₹6,000 Crore Via Bond Issuance

4 Apr 2025 , 08:43 PM

Power Grid Corporation of India Ltd. on April 4 said that its Committee of Directors for Bonds has approved a plan to raise up to ₹6,000 crore via the issuance of bonds.

The fundraising will have a tenor of four years through a private placement of unsecured, non-convertible, non-cumulative, redeemable, taxable bonds for the financial year 2026. The base issue size has been fixed at ₹1,500 crore.

Over and above, there is an additional ₹4,500 crore green shoe option (oversubscription) that can be tapped in addition to the ₹ 6,000 crore which is the potential issue size.

In accordance with its regulatory filing, the bonds will be displayed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The bonds have a 10-year tenure and will be redeemed at par upon maturity. Investors will receive annual interest payments during the bond’s lifespan.

The coupon, as well as the schedule of interest and principal payments, will be determined in a bid on the electronic book provider (EBP) platform. These include the bonds issued which are unsecured, i.e. they are not secured by specific assets of the Power Grid Corporation. The bonds do not have any special rights attached to them, and all investors are treated equally.