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PGCIL invites bids to raise at least Rs 1,000 crore

17 Dec 2011 Evaluate

PowerGrid Corporation of India (PGCIL) has invited bids to raise at least Rs 1,000 crore via long-tenure bonds. The company will raise funds by issuing 16-year bonds redeemable in 12 equal installments starting from the 4th year.

The company has fixed the upper band of the issue at a coupon rate of 9.40%. The issue is scheduled to stay open from December 19 to December 21.

PGCIL is India’s principal electric power transmission company. It owns and operates most of India’s interstate and inter-regional electric power transmission systems with inter-regional power transfer capacity of about 20,800 MW and wheels nearly 45% of total power generated across India.

The company has posted a net profit of Rs 709 crore for the second quarter ended September 30, 2011 of FY 2011-12, an increase of 9% against Rs 651 crore reported during the corresponding quarter ended September 30, 2010. Total income for July-September, 2011 rose to Rs 2,459 crore, up 11% from Rs 2,223 crore last year. 

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