Power Grid gets board approval to raise borrowing limit

11 Jul 2024 , 11:35 AM

The board of the state-owned Power Grid Corporation approved a proposal on Wednesday to boost the borrowing limit for 2024-25 to ₹15,000 Crore from ₹12,000 Crore using various instruments. The board has also set a ₹16,000 Crore borrowing ceiling for 2025-26.

Power Grid’s Board of Directors approved borrowing funds of up to ₹16,000 Crore during the fiscal year (FY) 2025-26 from various sources, including domestic bonds (secured/unsecured, non-convertible, non-cumulative, redeemable, taxable/tax-free under private placement), according to a BSE filing.

The board also increased the present borrowing limits from ₹12,000 Crore to ₹15,000 Crore during the fiscal year 2024-25 by issuing secured/unsecured, non-convertible, non-cumulative, redeemable, taxable/tax-free bonds through private placement from domestic/other sources.

The aforesaid acceptance of the agenda by the Board of Directors is subject to shareholder approval at the upcoming annual general meeting, it stated.

POWERGRID primarily operates a power transmission network using EHVAC/HVDC technology. The company has expanded into the telecom market by leveraging its Pan-India transmission network via optical ground wire (OPGW).

The company’s net sales in March 2024 were ₹11,978.11 Crore, down 2.33% from ₹12,263.72 Crore in March 2023. Quarterly net profit was ₹4,166.33 Crore in March 2024, down 3.57% from ₹4,320.43 Crore in March 2023.

In March 2024, EBITDA is at ₹10,426.31 Crore, down 6.94% from ₹11,203.33 Crore in March 2023. Power Grid Corp’s EPS fell to ₹4.48 in March 2024 from ₹6.19 in March 2023.

At around 11.28 AM, Power Grid Corporation was trading 0.65% lower at ₹343.80, against the previous close of ₹346.05 on NSE. The counter touched an intraday high and low of ₹348.75, and ₹342.15, respectively.

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