31 Jul 2023 , 10:12 AM
Power Grid Corporation of India announced that the board has granted its approval to borrow up to Rs 5,700 crore in tranches through unsecured bonds in the current financial year.
Following this development, the counter was trading 2.87% higher at Rs 265.60, against the previous close of Rs 258.20 on NSE. The stock touched a new 52-week high of Rs 266.60 in today’s trade.
The company stated in its filing with the exchanges that the funds will be used to meet the capex requirements of the company and to facilitate inter corporate loans to wholly owned subsidiaries/JVs.
The funds raised will be utilized for ‘general corporate purposes by securitization of cashflows’ of four operational special purpose vehicles – Powergrid Bhuj, Powergrid Khetri, Powergrid Medinipur Jeerat, and Powergrid Varanasi transmission systems – until March 2034, according to Power Grid.
Power Grid stated that in its first tranche, it plans to raise Rs 500 crore, consisting of an additional green shoe option of Rs 1,400 crore, taking the issue size to Rs 1,900 crore.
The bonds to be issued would be unsecured and redeemable at par in ten equal installments, with annual interest payments.
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