Shareholders okay PowerGrid bid to raise Rs 13K cr in FY16
State-owned Power Grid Corporation has got shareholders’ approval to raise up to Rs 13,000 crore from domestic and external sources during the current fiscal. “The shareholders of the company has approved special resolution “to raise funds in Indian rupee or any other acceptable foreign currency as permitted by RBI up to Rs 13,000 crore from domestic/external sources,” the company has in a BSE filing on Monday.
As per the approved resolution, the funds would be raised through secured/unsecured, non-convertible, non-cumulative, redeemable, taxable/tax-free bonds under private placement during 2015-16 in up to eight tranches of up to Rs 2,000 of bonds with or without green shoe option. Last month company’s Board of Directors has approved the proposal to raise Rs 13,000 crore through issuance of bonds subject to shareholders’ approval.
The shareholders also approved the resolution to provide guarantee or security in connection with any form of debt of up to Rs 1,400 crore for recently acquired project Vindhyachal Jabalpur Transmission, Gadarwara. Power Grid acquired the project from REC Transmission Projects a special purpose vehicle in February through tariff based competitive bidding. Shareholders have also approved the special resolution of the board to render all inputs and services on <g data-gr-id="22">cost</g> to cost basis of the project.
The state-run firm is in discussions with power and finance ministries as well as the World Bank regarding funding assistance of transmission systems for evacuation of power from the solar parks. Shares of the company were trading on Monday at Rs 139.25, down 0.45 per cent on the BSE.