Power Grid gets shareholders nod to raise Rs13,000 cr in FY16
PremiumLast month the company's board of directors approved the proposal to raise this money through issuance of bonds
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New Delhi: State-owned Power Grid Corporation has got shareholders’ approval to raise up to ₹ 13,000 crore from domestic and external sources during the current fiscal.
“The shareholders of the company has approved special resolution to raise funds in Indian rupee or any other acceptable foreign currency as permitted by RBI up to ₹ 13,000 crore from domestic/external sources," the company has in a BSE filing on Monday.
As per the approved resolution, the funds would be raised through secured/unsecured, non-convertible, non-cumulative, redeemable, taxable/tax-free bonds under private placement during 2015-16 in up to eight tranches of up to ₹ 2,000 of bonds with or without green shoe option.
Last month the company’s board of directors has approved the proposal to raise ₹ 13,000 crore through issuance of bonds subject to shareholders’ approval. The shareholders also approved the resolution to provide guarantee or security in connection with any form of debt of up to ₹ 1,400 crore for recently acquired project Vindhyachal Jabalpur Transmission, Gadarwara.
Power Grid acquired the project from REC Transmission Projects a special purpose vehicle in February through tariff based competitive bidding. Shareholders have also approved the special resolution of the board to render all inputs and services on cost to cost basis of the project.
The state-run firm is in discussions with power and finance ministries as well as the World Bank regarding funding assistance of transmission systems for evacuation of power from the solar parks. Shares of the company were trading today at ₹ 139.25, down 0.45% on the BSE.
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