Board of Powergrid Approves for Rs.5,000 Crore Fundraising

Power Grid Corporation of India Limited is a public sector company that operates under the Ministry of Power, Government of India. The company is engaged in the transmission of bulk power across different states in India contributing to the electricity infrastructure of the country. Through its extensive network, it ensures the transfer of electricity from power generating stations to various distribution networks, supporting the stable supply of energy across the country. 

Rs.5000 Cr Fundraise  

Yesterday, the board of directors of Power Grid Corporation of India approved a fundraiser amounting to Rs.5000 crore. The company announced through an exchange filing that “POWERGRID Board, in its meeting held on 22nd May 2024, have inter-alia approved the raising of funds through arranging Rupee Term Loan / Line of Credit (Bank Facility) for Rs. 5,000 Crore from Consortium of Bankers of POWERGRID.” This approval took place during the board meeting which was held yesterday.

Dividend Declarations for FY24

In addition to the fundraising approval, the board also recommended a final dividend of Rs.2.75 per share, translating to 27.5% of the paid-up equity share capital for FY24. This final dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM). 

This final dividend comes on top of two interim dividends already paid for the same financial year. The first interim dividend of Rs 4.00 per share (40% of the paid-up equity share capital) was announced on December 6, 2023. The second interim dividend of Rs 4.50 per share (45% of the paid-up equity share capital) was paid on March 5, 2024.

Conclusion: In conclusion, the board’s approval for the  Rs.5000 crore fundraising marks a strategic move to strengthen Power Grid Corporation of India’s financial resources. This decision, involving a Rupee Term Loan or Line of Credit from a consortium of bankers, showcases the company’s commitment to strengthening its electricity transmission infrastructure across the country.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.