Key Points
Power transmission utility seeks Rs 6,000 crore through 81st bond issue
10-year bonds offering annual interest payments
Green shoe option enables additional fundraising
Government-owned enterprise expanding infrastructure financing
The company announced the launch of its 81st bond issue, named POWERGRID Bonds-LXXXI (81st) Issue 2025-26. These bonds will be raised on a private placement basis and will be unsecured, non-convertible, non-cumulative, redeemable, and taxable.
It said "the 'Committee of Directors for Bonds' in their meeting held today i.e. on 04th April, 2025, has approved the raising of Bonds as Unsecured, Non-convertible, Non-cumulative, Redeemable, Taxable POWERGRID Bonds-LXXXI (81st) Issue 2025-26 (for an amount upto Rs. 6,000 Crore) on Private Placement"
According to the company, the total issue size is up to Rs 6,000 crore. This includes a base issue size of Rs 1,500 crore with a green shoe option of an additional Rs 4,500 crore. The green shoe option allows the company to raise more funds than the base amount if there is higher demand from investors.
The bonds will have a tenure of 10 years and will be redeemable at par at the end of this period. Investors will receive interest payments every year during the term of the bond.
This move is part of POWERGRID's regular fundraising activities to support its ongoing and upcoming projects. The company is one of India's largest power transmission utilities and is responsible for transmitting over half of the electricity generated in the country.
The bond issue is expected to attract interest from long-term investors looking for steady returns from a government-owned enterprise.
At the time of filing this report, the share of the Power Grid Corporation of India was trading at Rs 297 on the National Stock Exchange.
Comments:
Interesting move by POWERGRID. With their track record, these bonds should be a safe investment option for conservative investors. The 10-year tenure makes sense for infrastructure projects.
6,000 crore is huge! 😲 But POWERGRID has always been reliable with their bond payments. I invested in their last issue and got consistent returns. Might consider this one too.
Respectful criticism here - I wish they'd offer some shorter duration options too. 10 years is a long commitment, especially with changing interest rate scenarios. Otherwise, solid offering from a PSU.
The green shoe option shows they're expecting strong demand. Smart move to keep it flexible. POWERGRID bonds have historically outperformed many fixed deposit options. 💰
81st bond issue! That's some serious fundraising experience. Shows how crucial POWERGRID is for India's power infrastructure. Hope these funds help modernize our grid further.
