The Power Grid Corporation of India Limited (PGCIL) has asked for the approval of its shareholders to raise an amount of Rs 200 billion through bonds or debentures on private placement basis in the financial year 2019-20. The announcement was made through the company’s BSE filing.
Prior to this, the PGCIL’s board of directors had approved raising Rs 200 billion in up to twenty tranches depending upon the requirement of funds during 2019-20 to fund the company’s capital expenditure requirements, providing inter corporate loans to wholly-owned subsidiaries and for the general corporate purposes.
An amount of Rs 250 billion to Rs 300 billion is being considered as the expected capital expenditure for the financial year 2019-20. For a debt equity mix of 70:30, an amount between Rs 175 billion and Rs 210 billion is estimated to be mobilised as debt while Rs 75 billion to Rs 90 billion will be raised from internal resources during the year 2019-20.
The company has stated that the proposed borrowing for the period will remain under the overall borrowing limit of Rs 1800 billion.