Power Grid to raise Rs 6,000 crore via bonds, check stock reaction

Shares of Power Grid Corporation of India were trading on a flat note even as the state-owned firm said its committee of directors for bonds has cleared raising of up to Rs 6,000 crore through the issuance of bonds via private placement basis. Power Grid Corporation shares were trading on a flat note at Rs 297 on BSE. Market cap of the firm stood at Rs 2.76 lakh crore. Total 2.33 lakh shares of the firm changed hands amounting to a turnover of Rs 6.95  crore on BSE. Power Grid Corporation shares have a beta of 1.3, indicating very high volatility in a year.  

The stock has gained 6.90% in a year and risen 76% in a span of two years. 

Power Grid Corporation shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day but lower than the 100 day and 200 day moving averages.     

The committee cleared the issuance of unsecured, non-convertible, non-cumulative, redeemable, taxable bonds for the financial year 2026. The base issue size of the bond issue has been fixed at Rs 1,500 crore, with an option to retain oversubscription up to Rs 4,500 crore under the green shoe option, bringing the total potential issue size to Rs 6,000 crore.

The company said the bonds are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The tenure of the bonds is 10 years, with redemption at par upon maturity. Interest payments will be made annually.