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Power Grid shareholders' nod to raise Rs.13,000 crore in fiscal

IANS  |  New Delhi 

State-run Power Grid Corp said on Monday it has received shareholders' approval to raise up to Rs.13,000 crore from domestic and external sources during the current fiscal.

"The shareholders of the company have approved special resolution to raise funds in Indian rupee or any other acceptable foreign currency as permitted by RBI up to Rs.13,000 crore from

domestic/external sources," the company said in a stock exchange filing.

As per the approved resolution, the funds would be raised through secured and unsecured, non-convertible, non-cumulative, redeemable, taxable and tax-free bonds under private placement during 2015-16 in up to eight tranches of up to Rs.2,000 crore of bonds with or without green shoe option.

The green shoe option is exercised by a company making a public issue (IPO) to ensure that the share price on the exchange does not fall below the issue price after issue of shares.

The shareholders also approved the resolution to provide guarantee or security in connection with any form of debt of up to Rs.1,400 crore for the recently-acquired Vindhyachal Jabalpur Transmission project at Gadarwara.

Power Grid acquired the project from REC Transmission Projects in February through tariff- based competitive bidding.

The shareholders have also approved the rendering of all inputs and services required by the project special purpose vehicles on a cost-to-cost basis, the statement said.

First Published: Mon, May 18 2015. 18:38 IST