New Delhi: Power Grid Corporation of India Limited (PGCIL), a Maharatna public sector enterprise under the Ministry of Power, has announced its plans to raise up to ₹6,000 crore through the issuance of unsecured, non-convertible, non-cumulative, redeemable, and taxable bonds under its 81st bond issue via private placement. The approval for this move was granted by the Committee of Directors for Bonds in a meeting held on April 4, 2025.
Details of the Bond Issue
The bond issue comprises a base size of ₹1,500 crore, with a green shoe option to retain oversubscriptions of up to ₹4,500 crore, which would bring the total issue size to ₹6,000 crore.
These bonds are set to have a 10-year tenure, with annual interest payments and redemption at par upon maturity. The coupon rate will be determined after the bidding process, which will be conducted on the Electronic Book Provider (EBP) platform.
Additionally, the bonds will be listed on both the BSE and NSE, and are unsecured, meaning they will not carry any special rights, interests, or privileges. Power Grid Corporation has assured that there have been no delays or defaults in payments related to interest or principal on previous securities.
Purpose and Market Impact
As a major player in India’s power transmission sector, Power Grid aims to use the funds raised from the bond issue to support its ongoing capital expenditure and infrastructure growth. This move reflects the company’s continued confidence in the bond market as a means to finance its ambitious projects and bolster its financial stability.
The announcement further underscores PGCIL’s commitment to strengthening its operational capabilities while maintaining investor confidence in its long-term growth trajectory. The upcoming bond issuance is expected to be closely monitored by both institutional and retail investors, given the company’s solid track record and pivotal role in India’s energy sector.
