Power Grid To Raise Up To Rs 5,000 Crore Via 10-Year Bond

Power Grid Corporation of India Ltd. will raise Rs 5,000 crore through private placement of bonds maturing in 10 years. The bonds will be unsecured, non-convertible, non-cumulative, redeemable and taxable.

The base size of the bond issue is Rs 1,000 crore with a greenshoe option of Rs 4,000 crore, the company said in an exchange filing. It will also have an investment payment on a yearly basis.

The coupon or interest offered will be decided by the company after the bidding at the electronic book provider platform, the exchange filing said.

The board of directors of Power Grid in April had approved a fund raise of up to Rs 12,000 crore through bonds in this fiscal. In July, the company increased this borrowing limit from Rs 12,000 crore to Rs 15,000 crore. The funds will be raised through the issue of secured or unsecured, non-convertible, non-cumulative, redeemable, taxable/tax-free bonds under private placement from domestic or other sources in multiple tranches.

The board of directors has also approved plans to raise up to Rs 16,000 crore in financial year 2026.

Power Grid has in September won a transmission project based in Khavda, Gujarat. The project has been awarded on a "build, own, operate and transfer" basis. The project comprises the installation of static synchronous compensators at Khavda Pooling Station 1 and Khavda Pooling Station 3, along with associated bay extension work in Gujarat.

Shares of Power Grid fell as much as 2.51% to Rs 322.85 apiece on the NSE. The stock was trading 1.81% lower at Rs 325.15 per share as of 2:42 p.m. This compares with a 0.86% decline in the benchmark Nifty 50. It has risen 62.789% in the last 12 months and 36.43% year-to-date.

Out of 21 analysts tracking the company, 10 maintain a 'buy' rating, eight recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 3.3%.