Power Grid gets shareholder nod to raise up to Rs 20k cr
State-run Power Grid Corp has got shareholders' approval to raise up to Rs 20,000 crore through issuance of non-convertible bonds on private placement basis in the next fiscal.
PowerGrid informed BSE that in the AGM of September 19, a special resolution was passed to raise raise funds up to Rs 20,000 crore from domestic market through issuance of secured/ unsecured, non-convertible, noncumulative/ cumulative, redeemable, taxable/ tax-free Debentures/ Bonds under private placement in 2018-19 fiscal.
The funds will be raised in up to 20 tranches/offers, it said.
These fund would be used for financing company's capital expenditure requirement, providing inter corporate loans to wholly-owned subsidiaries and general corporate purposes.
The company said Rs 25,000-30,000 crore is the expected capital expenditure (CAPEX) during 2018-19.
In order to have a debt equity mix of 70:30, Rs 17,500- 21,000 crore is estimated to be mobilised as debt and balance Rs 7,500-9,000 crore from internal resources in the next fiscal.
Besides, the shareholders also approved the proposal to enhance borrowing limits from Rs 1,50,000 crore to Rs 1,80,000 crore, it said.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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