Power Grid Seeks Approval to Raise Rs 12,000 Cr in 2024-25

Power Grid Corp seeks shareholders' approval for Rs 12,000 Cr raise 2024-25

Power Grid Corp Seeks Approval to Raise Fund

In a bid to bolster its growth initiatives, the state-owned Power Grid Corporation is gearing up to secure shareholders’ approval for a raise fund of up to INR 12,000 crore. The funding will be procured through the issuance of bonds via private placement within the domestic market.

The company has set forth a pivotal resolution to be discussed at the upcoming Annual General Meeting (AGM) scheduled for August 30. The resolution entails the prospective capital raise of a substantial INR 12,000 crore, as indicated in an official notice released by the corporation.

As per the AGM notice, the envisaged funds will be garnered from the domestic market via the issuance of secured or unsecured, cumulative or non-cumulative, redeemable, taxable or tax-free debentures/bonds through private placement. This fundraising initiative is projected to span the fiscal year 2024-25 and may be executed in multiple tranches to optimize the financial strategy.

Beyond the fundraise, the Power Grid Corporation is also presenting proposals seeking shareholder authorization for two other key actions. Firstly, the company aims to capitalize on its reserves, a strategic maneuver that can augment its financial foundation and bolster its operational prowess. Secondly, the proposition to issue bonus shares will be placed before the shareholders for their consideration.

During the board meeting held on July 31, a resolution was put forth and subsequently recommended for the issuance of bonus shares. The proposed ratio for the bonus issuance stands at an attractive 1:3, achieved through the capitalization of a sum that does not surpass INR 2,325.15 crore.

Furthermore, the corporation seeks to fortify its financial flexibility by proposing an enhancement of its borrowing limit. The current borrowing limit of INR 6,000 crore is envisioned to be elevated to INR 8,000 crore. This will enable the corporation to tap into the potential of the domestic market by issuing secured or unsecured, cumulative or non-cumulative, redeemable, taxable or tax-free debentures/bonds via private placement throughout the fiscal year 2023-24.

About Power Grid:

Headquartered in Gurugram, the Power Grid Corporation is a central public sector undertaking owned by the Government of India’s Ministry of Power. Its primary focus is on transmitting bulk power across various Indian states.

For more of the Latest News, Click Here

Leave a Reply

Your email address will not be published. Required fields are marked *