In a strategic move aimed at strengthening its financial base, Power Grid Corporation of India, a Maharatna PSU (A top-tier public sector enterprise in India granted greater financial and operational autonomy by the government), has announced a ₹6,000 crore fundraising plan through the issue of unsecured bonds. The development follows the latest approval from the company’s Committee of Directors for Bonds and is expected to support its capital requirements for future infrastructure and power transmission projects.
On 4th April 2025, the Committee of Directors of Power Grid Corporation of India approved the issuance of unsecured, non-convertible, non-cumulative, redeemable, taxable bonds. These are being launched under the POWERGRID Bonds-LXXXI (81st) Issue for the financial year 2025-26. The total value of the bond issue stands at ₹6,000 crore, which includes a base issue (the original amount a company plans to raise) of ₹1,500 crore and a green shoe option (issue and sell additional securities—beyond the original offer size) of ₹4,500 crore, allowing for flexibility based on investor demand.
The bonds will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), enhancing accessibility and market liquidity. These bonds will carry a tenure of 10 years and will be redeemable at par upon maturity. Investors will receive annual interest payments, with the coupon rate determined via a competitive bidding process conducted on the Electronic Book Provider (EBP) platform.
It’s worth noting that these are unsecured bonds, meaning they are not backed by specific collateral. However, given the Power Grid Corporation of India’s strong financial track record, investor confidence remains robust. The company has no past defaults or delays in payment of interest or principal amounts, further underlining its reliable credit profile.
This bond issuance is not just a routine fundraising exercise—it’s a reflection of the company’s long-term planning and financial discipline. The funds raised are expected to support key capital expenditure and infrastructure development plans. As one of the leading players in India’s power transmission sector, Power Grid Corporation of India continues to play a critical role in the nation’s energy security and grid expansion goals.
The Power Grid Corporation of India share price has experienced mixed momentum over the past few months. The PSU stock gained around 7% over the past year, showcasing overall resilience. However, it witnessed notable volatility in recent quarters. The share price fell by 6.3% in December, followed by 2.3% in January and a sharp 17% decline in February.
Interestingly, March brought a much-needed rebound, with the stock surging by 16%, signalling renewed investor interest and market optimism. Following the fundraising announcement, Power Grid Corporation of India share price dropped by 1.69% or ₹5.05, trading at ₹294.05 as of 3:13 PM on April 4, 2025.
Power Grid Corporation of India continues to stand out as a trusted name in the public sector space. With a robust operational framework, clean financial history, and long-term strategic vision, it remains a preferred choice among investors looking for stable returns.
As the bond issuance gains traction in the market, all eyes will be on the Power Grid Corporation of India share price and how it responds to the company’s proactive financial planning. For long-term investors, this could signal both stability and future growth potential.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 4, 2025, 3:23 PM IST
Suraj Uday Singh
Suraj Uday Singh is a skilled financial content writer with 3+ years of experience. At Angel One, he excels in simplifying financial concepts. Previously, he cultivated his expertise at a leading mortgage lending firm and a prominent e-commerce platform, mastering consumer-focused and engaging content strategies.
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