Power Grid Corporation of India has approved a plan to raise ₹5,000 crore through a private placement of bonds, the company announced on September 18. The bonds will be unsecured and listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The issuance aims to support the company’s capital expenditure and refinancing needs.
The Committee of Directors at Power Grid Corporation sanctioned the bond issuance, which will carry a tenure of 10 years. The bonds will have annual redemptions starting after four years from the date of allotment. This structured repayment schedule is designed to manage the company’s debt obligations efficiently while maintaining liquidity.
This bond issue comes amid a broader trend of public sector undertakings tapping the debt market to fund infrastructure projects. Power Grid’s move aligns with other Maharatna PSUs that have recently raised capital through bond sales to finance expansion and modernization. The private placement route offers a quicker and more flexible alternative to public offerings, helping the company meet its financing requirements promptly.
The bonds will be listed on BSE and NSE, providing liquidity options for investors. The company’s decision to raise ₹5,000 crore through this issuance reflects its ongoing efforts to strengthen its financial position and support its strategic initiatives in the power transmission sector.