Maharatna company Power Grid Corporation of India declares up to ₹6000 crore fundraise via bonds

Power Grid Corporation of India Limited (POWERGRID) has announced the issuance of unsecured, non-convertible, non-cumulative, redeemable, and taxable bonds under its POWERGRID Bonds-LXXXI (81st) Issue for the financial year 2025-26. The company’s Committee of Directors for Bonds approved this issuance in a meeting held on April 4, 2025. The total bond issue size stands at ₹6,000 crore, comprising a base issue of ₹1,500 crore and an additional green shoe option of ₹4,500 crore.

Key Features of the Bond Issuance

The bonds will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), ensuring greater market visibility and liquidity for investors. These bonds come with a tenure of ten years and will be redeemable at par upon maturity. Interest payments will be made annually.

The coupon rate or interest rate for the bonds will be determined through a competitive bidding process on the Electronic Book Provider (EBP) platform. As unsecured instruments, these bonds do not have any specific assets pledged as collateral. Additionally, POWERGRID has confirmed that the bonds do not offer any special rights, interest benefits, or privileges.

Importantly, the company has maintained a clean financial record, with no delays in interest or principal payments beyond three months from the due date. Furthermore, there have been no official letters or comments regarding non-payment issues, reinforcing POWERGRID’s strong credit standing. The redemption of preference shares does not apply to this issuance.

The Committee of Directors for Bonds convened at 11:15 a.m. and concluded its meeting at 11:40 a.m. The bond issuance is expected to support POWERGRID’s financial plans and long-term growth strategies.

Stock Price Trend

Shares of Power Grid have shown mixed performance in recent months. While the PSU stock has gained nearly 7 percent over the past year, it exhibited volatility in the last few months. After experiencing three consecutive months of declines—falling 6.3 percent in December, 2.3 percent in January, and 17 percent in February—the stock rebounded with a strong 16 percent surge in March.

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