New Delhi: State-run Power Grid Corporation has got shareholders’ approval to raise up to Rs20,000 crore through issuance of non-convertible bonds on private placement basis in the next fiscal.
PowerGrid informed BSE that in the company’s annual general meeting of 19 September, a special resolution was passed to raise funds up to Rs20,000 crore from domestic market through issuance of secured/unsecured, non-convertible, non-cumulative/cumulative, redeemable, taxable/tax-free debentures/bonds under private placement in 2018-19 fiscal.
The funds will be raised in up to 20 tranches or offers, it said. These fund would be used for financing company’s capital expenditure requirement, providing inter corporate loans to wholly-owned subsidiaries and other general corporate purposes.
The company said Rs25,000-30,000 crore is the expected capital expenditure (capex) during 2018-19. In order to have a debt equity mix of 70:30, Rs17,500-21,000 crore is estimated to be mobilised as debt and balance Rs7,500-9,000 crore from internal resources in the next fiscal. Besides, the shareholders also approved the proposal to enhance borrowing limits from Rs1,50,000 crore to Rs1,80,000 crore, it said.