The Power Grid Board of India Ltd. board of directors has approved raising funds up to ₹5,700 crore through the issue of unsecured bonds on a private placement basis to finance its capital expenditure needs partially.
The decision was announced to the Indian stock market exchanges on Saturday by the central public sector undertaking. The PSU company continued by stating that during the fiscal year 2023–2024, the fund would be raised in a number of tranches.
The net proceeds would be used to provide intercorporate loans to four wholly owned subsidiaries: Power Grid Bhuj Transmission Limited, Power Grid Khetri Transmission System Limited, Power Grid Medinipur Jeerat Transmission System Limited, and Power Grid Varanasi Transmission System Limited.
Fundraising information for Power Grid board
According to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Power Grid board informed Indian exchanges of the development, citing, “In accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is to inform that the Committee of Directors for Bonds, in their Meeting held today, i.e. on July 29, 2023, have approved the raising of up to ₹5,700 crores in FY.”
Here Are All The Specifics Of The Power Grid Board’s ₹5,700 Crore Fund-Raising Strategy, As Disclosed By The PSU On The BSE:
- The issue’s size is as follows: POWERGRID Bonds, LXXIII (73rd) Issue, Base Issue Size: ₹500 Crore, Green Shoe Option: ₹1400 Crore, Total Issue Size: ₹1900 Crore.
- Whether it is desired to be listed: Yes. relating to BSE or NSE.
- Duration of the instrument – Date of allocation and Date of Maturity: Bonds are redeemable at par in ten equal payments, with interest paid annually.
- The proposed coupon/interest, the schedule for paying the coupon/interest, and the principal after the Electronic Book Provider (EBP) Platform auction.
- Any charge or security established over the assets: Unsecured.
