POWERGRID Approves ₹3,800 Crore Bond Issue Through Private Placement

Power Grid Corporation of India Limited (POWERGRID), a Government of India enterprise, has approved raising capital through a private placement of bonds. The decision was taken by the Committee of Directors for Bonds during a meeting held on November 17, 2025. The proposed issue, named POWERGRID Bonds – LXXXIII (83rd) Issue 2025-26, aims to raise up to ₹3,800 crore. This includes a base issue size of ₹1,000 crore and a Green Shoe Option of ₹2,800 crore. The bonds are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The bonds are structured as unsecured, non-convertible, non-cumulative, redeemable, and taxable. Redemption will take place at par through ten equal annual installments, while interest payments will be made annually to bondholders. The final coupon rate or interest rate for these bonds will be determined through a competitive bidding process conducted on the Electronic Book Provider (EBP) platform.

POWERGRID has confirmed its strong financial record in relation to its existing debt. The company reported that there have been no delays or defaults in the payment of interest or principal exceeding three months from the due date. Additionally, the company has not received any adverse letters or comments from debenture trustees regarding the payment history of its existing securities.

The meeting of the Committee of Directors for Bonds commenced at 2:15 P.M. and concluded within twenty minutes at 2:35 P.M. The approval of this bond issue reflects POWERGRID’s strategy to raise long-term capital while maintaining its clean financial record. By issuing these bonds, the company aims to strengthen its financial position and support its ongoing infrastructure and operational requirements, ensuring transparency and efficiency in the process. The move also provides an opportunity for investors to participate in a secure, government-backed bond offering with structured returns over a ten-year period.