Power Grid Corporation of India said that its committee of directors for bonds approved issue of bonds having base size of upto Rs 300 crore and green shoe option upto Rs 600 crore.
Power Grid will issue unsecured, non-convertible, non-cumulative, redeemable, taxable PowerGrid bonds-LXXI aggregating upto Rs 900 crore on private placement basis.The company said that the funds raised will be utilized for securitization of cashflows of 10 years, which is till FY 2032-33 of its operational special purpose vehicle (SPV), Power Grid Mithilanchal Transmission.
The bonds will be redeemed at par in 40 equal instalments and interest payment on quarterly basis, the coupon rate for which is to be decided after electronic book provider.
Menawhile, the company announced that it has been declared as successful bidder under Tariff Based Competitive Bidding to establish inter-state transmission system for transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase-II Part-E on build, own operate and maintain (BOOM) basis.
The Letter of Intent (LoI) has been received by Power Grid on 7 March 2023. The scope of the project comprises of establishment of a 765kV D/c transmission line along with associated line bays in the State of Rajasthan.
Power Grid Corporation of India has been established by the Government of India (GoI) as the central transmission utility of India. As of 31 December 2022, the Government of India owned a 51.34% stake in the company.
The company's consolidated net profit rose 10.7% to Rs 3,645.34 crore on 7.8% increase in revenue from operations to Rs 11,261.78 crore in Q3 FY23 over Q3 FY22.
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Shares of Power Grid Corporation of India rose 0.77% to Rs 229.70 on BSE.
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