Investors' nod for Power Grid to raise Rs.14,000 crore

State-run Power Grid Corporation Ltd. has secured approval of its shareholders to raise Rs.14,000 crore through bonds from domestic and external sources in next 2016-17 fiscal.

In a regulatory filing to the Bombay Stock Exchange (BSE) on Friday, the Gurgaon-based company said the approval was secured at its annual general meeting held on Tuesday.

"Shareholders approved the proposal to raise the amount through secured, unsecured, non-convertible, non-cumulative, redeemable, taxable or tax-free, rupee linked bonds under private placement in 2016-17," the filing said.

The company plans to raise the funds in eight offers of Rs.2,000 crore of bonds in each tranche with or without green shoe option.

"The funds will be used for capital expenditure, provide loans to projects and the special purpose vehicles the company acquired," the filing noted.

The investors also approved a resolution to increase borrowing limit to Rs.1.5-lakh crore from Rs.1.3-lakh crore, with a capex of Rs.1-lakh crore for five years.

The company will raise up to Rs.12,000 crore through bonds from the domestic market during this fiscal (2015-16) and make a capex (capital expenditure) of Rs.22,500 crore on its expansion plans.