Power Grid Corporation of India board on July 29 approved raising up to Rs 5,700 crore in tranches in the current financial year through unsecured bonds.
The funds will be used to meet the company's capex requirement, and "for providing inter corporate loan(s) to wholly owned subsidiaries/JVs", the public sector undertaking said in a regulatory filing.
"...the Committee of Directors for Bonds, in their meeting held today i.e. on 29th July, 2023, have approved the raising of up to Rs 5,700 crore in FY 23-24 in multiple tranches," the central public sector undertaking told stock exchanges.
Power Grid said the fund raised will be used for "general corporate purposes by securitisation of cashflows” of four operational special purpose vehicles – Powergrid Bhuj, Powergrid Khetri, Powergrid Medinipur Jeerat and Powergrid Varanasi transmission systems – up to March 2034.
In the first tranche, Power Grid said it would target to raise Rs 500 crore, with an additional green shoe option of Rs 1,400 crore. It would take the issue size to Rs 1,900 crore.
The bonds would be unsecured and redeemable at par in 10 equal instalments and interest payment on a yearly basis, it said. The coupon, or interest to be offered, would be decided after bidding at Electronic Book Provider (EBP) Platform.
The company is yet to declare the results for the first quarter of FY24. In the fourth quarter of FY23, it reported a profit after tax of Rs 4,320 crore, 4 percent higher than the year-ago quarter. Consolidated revenue was up 15 percent on-year at Rs 12,264 crore.
On July 28, Power Grid shares closed at Rs 258.25 on the BSE, up 3.05 percent from the previous session.
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