Power Grid gets shareholders’ approval to raise Rs.14,000 crore

Kolkata, Sep 17 (IANS) State-owned Power Grid Corporation of India (PGCI) on Thursday said it has received shareholders’ nod to raise a maximum amount of Rs.14,000 crore through issuance of bonds during 2016-17.

In a regulatory filing with the Bombay Stock Exchange, the company said it received the approval during its annual general meeting held on Tuesday.

These funds may be raised from both domestic as well as overseas sources through secured or unsecured, non-convertible eupee-linked bonds.

According to the statement, the company will raise the funds in a maximum of eight tranches or offers – with or without green shoe option – while each of these tranches will have an allotment of upto Rs.2,000 crore worth of bonds, exclusive of green shoe option.

The green shoe option allows the firm to sell investors more shares than originally planned by the issuer.

As per the filing, stakeholders of PGCI have also approved the proposal to enhance the borrowing limit from the existing Rs.130,000 crore to Rs.150,000 crore.

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