Power Grid to Raise Rs 3,800 Crore Through Bonds

Power Grid plans to raise up to Rs 3,800 crore through bonds via private placement. The proposal, approved by the directors, involves a base issue of Rs 1,000 crore with a green shoe option for Rs 2,800 crore. Bonds mature in 10 equal annual installments with yearly interest payments.

In a strategic move to bolster funds, Power Grid announced on Monday that it has secured board approval to raise up to Rs 3,800 crore through bonds. The bonds will be issued on a private placement basis.

The planned raising involves a base issue of Rs 1,000 crore, coupled with a green shoe option allowing an additional Rs 2,800 crore. This step signifies the company's proactive approach in managing its financial resources.

The bonds will be structured to redeem at face value in ten equal annual installments, ensuring a consistent and predictable repayment schedule. Annual interest payments further provide clarity for investors.

(With inputs from agencies.)