Power Grid Corporation of India has approved a plan to raise up to ₹5,000 crore through the private placement of bonds, giving the power transmission company another fundraising route. The decision was taken by the company’s Committee of Directors for Bonds at a meeting held on September 18, 2026.
The proposed issue is for unsecured, non-convertible, non-cumulative, redeemable and taxable POWERGRID Bonds – LXXXIV (84th) Issue 2026-27. The company informed the stock exchanges that the fundraising will be carried out through private placement.
₹5,000 crore bond issue details
The total size of the proposed bond issue has been fixed at ₹5,000 crore. This includes a base issue of ₹1,000 crore and a green shoe option of ₹4,000 crore.
The bonds are proposed to be listed on both the BSE and NSE. They will have a tenure of 10 years from the deemed date of allotment, with annual redemption payments beginning from the end of the fourth year.
The coupon or interest rate on the bonds has not yet been decided. Power Grid said the coupon, interest payment schedule and principal payment details will be finalised after bidding on the Electronic Book Provider (EBP) platform.
The bonds will be unsecured, meaning they will not have any specific charge or security created over the company’s assets. The filing also stated that there are no special rights, interests or privileges attached to the instruments.
Power Grid also disclosed that there had been no delay of more than three months in the payment of interest or principal, and there were no comments or letters regarding non-payment of interest or principal on the due dates or any other matter related to the security or assets.
The company said details relating to redemption of preference shares and debentures were not applicable.
Power Grid stock performance
The PSU stock ended 2.5% higher at ₹270. Despite the gain, the stock has remained under pressure in recent months, declining 0.5% in one month, 8% in three months, 11% in six months and 8% over the last one year. Over a five-year period, however, it has delivered multibagger returns, rising 101%. The stock hit a 52-week high of ₹324.80 in April 2026 and a 52-week low of ₹250 in February 2026.
Power Grid Q1 Results
On the financial front, Power Grid Corp. recorded a 0.9% year-on-year decline in consolidated net profit for Q1 FY27, which came in at ₹3,598 crore, below the Street estimate of ₹3,866.5 crore. Revenue from operations increased 2.7% YoY to ₹11,497 crore, but also missed market expectations.
Despite the lower-than-expected profit and revenue, the company saw improvement at the operating level. Ebitda rose 4.3% YoY to ₹9,536 crore, while the Ebitda margin widened to 82.9% from 81.7% in the year-ago period.
Power Grid Corporation of India is a state-owned power transmission company responsible for transmitting electricity across India.
It operates one of the country’s largest power transmission networks and also has businesses in telecom and consultancy services related to the power sector.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
