The Power Grid Corporation of India Ltd (POWERGRID) announced plans to raise up to Rs 6000 crore through the issuance of unsecured, non-convertible, non-cumulative, redeemable, and taxable bonds.
This marks the company’s 81st bond issue, termed POWERGRID Bonds-LXXXI (81st) Issue 2025-26, and will be conducted via private placement. The decision was officially sanctioned during a meeting held on April 4, 2025, by the company’s ‘Committee of Directors for Bonds.’ The issuance structure includes a base amount of Rs 1500 crore, with an additional green shoe option allowing the company to raise up to Rs 4500 crore more, depending on investor demand. This flexible mechanism is designed to accommodate varying market conditions and investor interest. The bonds are set with a tenure of 10 years, offering annual interest payouts to investors and are redeemable at par upon maturity. This structure is particularly attractive to long-term investors seeking stable returns from a government-backed enterprise.
POWERGRID, one of India’s largest power transmission utilities, plays a pivotal role in transmitting over half of the nation’s electricity. The funds raised from this bond issue are intended to support the company’s expansive growth plans, including the development of high-capacity transmission lines and substations critical for India’s energy transition goals. This bond issuance also aligns with the broader national agenda of enhancing sustainable infrastructure. The company’s focus on strengthening transmission networks supports renewable energy integration, helping to achieve India’s zero net carbon targets.
The strategic allocation of these funds is expected to contribute to eco-friendly and resilient power infrastructure, fostering sustainable urban and rural development. Market experts view this bond issue as a testament to POWERGRID’s robust financial health and its crucial role in India’s energy ecosystem. The company’s consistent performance, backed by government support and a strong operational track record, positions it as a preferred choice for institutional investors. The green shoe option, a key feature of this bond issuance, allows POWERGRID to tap into additional funds if the bonds are oversubscribed, providing flexibility in meeting the capital requirements of its ambitious projects. This mechanism also reflects the company’s confidence in strong market demand.
The issuance comes at a time when the Indian bond market is witnessing increased interest from both domestic and international investors, driven by the growing emphasis on sustainable investments and the need for resilient energy infrastructure. By securing funds through this bond issue, POWERGRID aims to fortify its position as a leader in India’s power transmission sector, contributing to the country’s energy security and sustainability objectives.
Power Grid Launches 6000 Crore Bond Drive
