Power Grid Corporation, a Maharatna Central Public Sector Undertaking (CPSU) and the largest electric power transmission company, announced on Monday, November 17, that its committee of directors has approved a proposal to raise up to ₹3,800 crore through the issuance of bonds on a private placement basis.
The base issue size will be ₹1,000 crore, with a green shoe option of ₹2,800 crore, the company said in an exchange filing.
The bonds will be listed on the BSE and NSE, and the company said that these bonds are redeemable at par in 10 equal annual installments, with interest paid on a yearly basis.
However, the company has not disclosed the coupon/interest rate of the bonds; instead, it said these will be decided after bidding on the Electronic Book Provider (EBP) platform.
The company also stated that there were no delays or defaults related to payments on existing debt instruments, and no comments were received from debenture trustees regarding non-payment.
Indian corporate bond yields have eased over the past few days as supply from top-rated state-run companies has dried up and as government bond yields have declined due to suspected bond purchases from the central bank.
For the September quarter, the company posted a 6% year-on-year drop in net profit to ₹3,566 crore from ₹3,793 crore in Q2 FY25. Revenue grew 1.8% YoY to ₹11,476 crore from ₹11,277 crore.
At the operating level, the company’s EBITDA declined 6.1% YoY to ₹9,114 crore from ₹9,701 crore, with margins narrowing to 79.4% compared with 86% a year ago.
Power Grid Corporation share price trend
The company shares have weakened since reaching a record high of ₹366.25 apiece, losing 17% of their value. Although the shares attempted a recovery, they failed to maintain the momentum.
In terms of yearly performance, the shares are down 11.40% so far, and if they close the year with negative returns, it will mark their first yearly decline in four years.
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