Power Grid ₹5,000 Crore Bond Issue Approved: Check Key Details
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Power Grid Corporation has approved a ₹5,000 crore bond issue through private placement, comprising a ₹1,000 crore base issue and ₹4,000 crore green shoe option.
Power Grid Corporation of India has approved a plan to raise up to ₹5,000 crore through a private placement of bonds, adding to the state-owned power transmission company’s fundraising plans.
The proposed fundraising comes as Power Grid continues to invest in its power transmission business and related operations, with the company also reporting higher operating profit in the June quarter.
Power Grid stock ended at ₹270.3 on 18 September, up 2.48% for the day on the National Stock Exchange (NSE). However, the stock has declined 0.5% over one month, 8% over three months, 11% over six months and 8% over one year.
How Power Grid Plans To Raise Funds
Power Grid’s Committee of Directors for Bonds approved the proposed fundraising at its meeting on 18 September 2026.
The issue will comprise unsecured, non-convertible, non-cumulative, redeemable and taxable POWERGRID Bonds – LXXXIV (84th) Issue 2026-27. The bonds will be issued through private placement.
The total issue size is ₹5,000 crore, comprising a base issue of ₹1,000 crore and a green shoe option of ₹4,000 crore.
What Is The Tenure Of Power Grid Bonds?
The bonds will have a tenure of 10 years from the deemed date of allotment. Annual redemption payments will begin after the end of the fourth year.
The proposed bonds will be listed on both the Bombay Stock Exchange (BSE) and NSE.
However, the coupon or interest rate has not yet been finalised. The company said the coupon, interest payment schedule and principal payment details will be determined after bidding on the Electronic Book Provider (EBP) platform.
Are The Power Grid Bonds Secured?
The proposed bonds will be unsecured, meaning no specific charge or security will be created over Power Grid’s assets. The company also stated that the instruments will not carry any special rights, interests or privileges.
Power Grid disclosed that there had been no delay of more than three months in payment of interest or principal. It also said there were no comments or letters concerning non-payment of interest or principal on due dates or matters related to the security or assets.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
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