Power Grid seeks shareholders' nod to raise Rs 12,000 crore in 2024-25

New Delhi: State-owned Power Grid Corporation of India Limited (PGCIL) will seek shareholders' approval to raise up to Rs 12,000 crore through issuance of bonds on a private placement basis in the domestic market.

The company has listed a resolution for the Annual General Meeting (AGM) on August 30 to raise funds up to Rs 12,000 crore, according to a notice.

The funds will be raised from the domestic market through issue of secured/unsecured, non-convertible, non-cumulative/ cumulative, redeemable, taxable/tax-free debentures/bonds under private placement during 2024-25 in one or more tranches, as per the AGM notice.

The company will also seek approval from the shareholders to capitalise reserves of and to issue bonus shares.

At its meeting on July 31, the company's board recommended issue of bonus shares

The board in its meeting held on July 31, 2023, recommended issue of Bonus in the proportion of 1:3 by capitalisation of a sum not exceeding Rs 2,325.15 crore.

According to the notice, shareholders' nod will also be sought to enhance borrowing limit from Rs 6,000 crore to Rs 8,000 crore from the domestic market through issue of secured/ unsecured, non-convertible, noncumulative/ cumulative, redeemable, taxable/ taxfree debentures/ bonds under private placement for 2023-24.

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