Power Grid board gives nod to raise up to ₹12,000 crore via issuance of bonds
Upstox
2 min read • Updated: April 17, 2024, 5:31 PM
Summary
The bonds will be “unsecured, non-convertible, non-cumulative, redeemable, and taxable”, and will be issued in one or more tranches during the fiscal year, Power Grid Corp informed the stock exchanges.
State-run power transmitter Power Grid Corporation on Wednesday, April 17, said its board of directors has given the nod to raise up to ₹12,000 crore via the issuance of bonds in financial year 2024-25.
The bonds will be “unsecured, non-convertible, non-cumulative, redeemable, and taxable”, and will be issued in one or more tranches during the fiscal year, the company informed the stock exchanges.
The tenure of the instrument, which includes the date of allotment and date of maturity, will be decided tranch-wise, the regulatory filing noted.
The coupon or interest to be offered on the bonds, along with the schedule of payment, will be decided after bidding at the electronic book provider platform, the company added.
Notably, Power Grid is the country's largest electric power transmission utility. It operates 86% of inter-regional networks. The company is engaged in the bulk transmission of power across states in the country.
Power Grid bags 3 transmission projects
The announcement related to the bond issue came a day after Power Grid informed the exchanges that it has bagged three inter-state transmission projects under tariff-based competitive bidding.
The three projects would help evacuate power from renewable energy projects in Rajasthan and Gujarat, the company said in an exchange filing.
The first project is transmission system for evacuation of power from Rajasthan (Jaisalmer/Barmer Complex). It comprises establishment of new 765/400/220 kV pooling substation at Mandsaur, 765kV D/C Transmission Line and extension of associated bays at existing substation in Madhya Pradesh.
The second project – transmission system for evacuation of power from potential renewable energy zone at Khavda in Gujarat – comprises augmentation works at existing substation in the state.
The third project is transmission system for evacuation of power from Rajasthan involving the establishment of new 765 kV sub-station at Rishabhdeo, 765kV D/C transmission lines and extension of associated bays at other substations in Rajasthan and Madhya Pradesh.
Power Grid shares
In the last trading session on April 16, the shares of Power Grid settled at Rs 274.25 apiece on the NSE, up 0.07% as against the previous day’s close. Year-to-date, the shares have rallied by 15%, whereas the surge has been sharper in the last one-year period at 58.6%.
With PTI inputs