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Power Grid seeks shareholders' nod for raising up to Rs 10,000 cr via bonds


Press Trust of India New Delhi
State-owned transmission utility Power Grid said Monday it will seek shareholders' approval next month to raise up to Rs 10,000 crore through the issuance of bonds on a private placement basis.
A special resolution will be considered "to raise funds up to Rs 10,000 crore, from domestic market through issue of secured/unsecured, non-convertible, noncumulative/cumulative, redeemable, taxable/tax-free debentures/bonds under private placement during 2020-21 in up to twenty tranches/offer", according to a notice for the annual general meeting, scheduled for August 27.
In its meeting on July 3, the company's board approved raising up to Rs 10,000 crore in up to 20 tranches depending upon the requirement of funds during 2020-21 to finance of the firm's capital expenditure requirement, providing inter-corporate loans to wholly-owned subsidiaries, other purposes and for general corporate purposes.
An amount of Rs 10,000 crore to Rs 15,000 crore is being considered as expected capital expenditure during 2020-21. In order to have a debt-equity mix of 70:30, an amount of Rs 7,000 crore to Rs 10,500 crore is estimated to be mobilised as debt and the remaining Rs 3,000 crore to Rs 4,500 crore from internal resources in 2020-21.
The proposed borrowing for 2020-21 will be within overall borrowing limits of Rs 1,80,000 crore, it added.

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First Published: Jul 29 2019 | 9:15 PM IST

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