Power Grid Corporation of India Limited (POWERGRID) has recently revealed plans to issue a batch of unsecured, non-convertible, non-cumulative, redeemable, and taxable bonds under its POWERGRID Bonds-LXXXI (81st) offering for the 2025-26 fiscal year. This decision was ratified by the company’s Committee of Directors for Bonds during a meeting on April 4, 2025.

Key Details of the Bond Issuance

The total size of the bond issue is set at an impressive ₹6,000 crore, which includes an initial base offering of ₹1,500 crore along with a green shoe option of ₹4,500 crore. This structure allows for flexibility in attracting additional investment based on demand.

• Listing: Bonds will be available on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), enhancing market visibility and liquidity for investors.
• Tenure: The bonds will have a ten-year maturity period, redeemable at par upon expiration.
• Interest Payments: Investors will receive annual interest payments, with the exact coupon rate determined via a competitive bidding process on the Electronic Book Provider (EBP) platform.

It’s important to note that these bonds are unsecured, meaning there are no specific assets pledged as collateral. POWERGRID has clarified that these bonds do not come with any special rights or privileges for investors.

Financial Stability of POWERGRID

POWERGRID has a strong financial track record, having never delayed interest or principal payments beyond three months. There have also been no indications of non-payment issues, further solidifying the company’s robust credit rating. Notably, this bond issuance does not involve the redemption of preference shares.

The Committee of Directors for Bonds convened their meeting at 11:15 a.m., wrapping up just 25 minutes later, at 11:40 a.m. This swift decision-making reflects the company’s commitment to its financial strategies and long-term growth objectives.

Stock Performance Overview

In recent times, POWERGRID’s stock has experienced a mixed trajectory. Over the past year, shares have appreciated nearly 7 percent, but fluctuations have been evident in the short term. After a troubling streak of three consecutive months of decline—where the stock fell 6.3 percent in December, 2.3 percent in January, and a staggering 17 percent in February—there was a notable recovery with a 16 percent rise in March.

In summary, the upcoming bond issuance by POWERGRID not only underscores the company’s growth plans but also reinforces its commitment to maintaining a strong financial foundation. Investors looking for opportunities in the power sector may find this bond offering particularly appealing. For more insights into market trends and POWERGRID’s strategies, stay tuned for further updates.