Power Grid gets shareholder nod to raise up to Rs 20k cr

State-run Power Grid Corp has got shareholders' approval to raise up to Rs 20,000 crore through issuance of non-convertible bonds on private placement basis in the next fiscal.
PowerGrid informed BSE that in the AGM of September 19, a special resolution was passed to raise raise funds up to Rs 20,000 crore from domestic market through issuance of secured/ unsecured, non-convertible, noncumulative/ cumulative, redeemable, taxable/ tax-free Debentures/ Bonds under private placement in 2018-19 fiscal.
The funds will be raised in up to 20 tranches/offers, it said.
These fund would be used for financing company's capital expenditure requirement, providing inter corporate loans to wholly-owned subsidiaries and general corporate purposes.

The company said Rs 25,000-30,000 crore is the expected capital expenditure (CAPEX) during 2018-19.
In order to have a debt equity mix of 70:30, Rs 17,500- 21,000 crore is estimated to be mobilised as debt and balance Rs 7,500-9,000 crore from internal resources in the next fiscal.
Besides, the shareholders also approved the proposal to enhance borrowing limits from Rs 1,50,000 crore to Rs 1,80,000 crore, it said.