PowerGrid seeks shareholders’ nod for raising ₹20,000 crore
₹20,000 crore to be raised in up to twenty tranches for capital expenditure, providing inter corporate loans to wholly-owned subsidiaries and for general corporate purposes
New Delhi: State-owned PowerGrid on Friday said it has sought shareholders’ approval for raising ₹20,000 crore through bonds or debentures on private placement basis in 2019-20 in its annual general meeting on 18 September.
The proposal to raise funds up to ₹20,000 crore, from domestic market through issue of secured/unsecured, non-convertible, non-cumulative/cumulative, redeemable, taxable/tax-free debentures/bonds under private placement during 2019-20 in up to twenty tranches/offers, is listed on the agenda of annual general meeting on 18 September, as per a BSE filing.
The board in 355th meeting held on 10th July, 2018, approved raising of ₹20,000 crore in up to twenty tranches, depending upon the requirement of funds in 2019-20 for capital expenditure, providing inter corporate loans to wholly-owned subsidiaries and for general corporate purposes.
An amount of ₹25,000 crore to ₹30,000 crore is being considered as expected capital expenditure during 2019-20.
In order to have a debt equity mix of 70:30, an amount of ₹17,500 crore to ₹21,000 crore is estimated to be mobilised as debt and balance ₹7,500 crore to ₹9,000 crore from internal resources during next fiscal.
The company said that the proposed borrowing for 2019-20 will be within overall borrowing limits of ₹1,80,000 crore and the board recommended passing of the resolution.
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