Power Grid Approves Bond Issue For Rs 4,250 Crore; Shares Drop
Power Grid Corp stock fell as much as 2.77% during the day to Rs 320.65 apiece on the NSE.
Power Grid Corp of India Ltd's committee of directors for bonds approved the issuance of unsecured, non-convertible, non-cumulative, redeemable, taxable bonds worth up to Rs. 4,250 crore through a private placement.
The decision was taken during a meeting held on Wednesday and the issue comprises a base size of Rs. 1,000 crore and a green shoe option of Rs. 3,250 crore.
The bonds will be redeemable at par at the end of the tenth year. They will offer annual interest payments, with details such as the coupon rate and payment schedule to be determined through bidding on the Electronic Book Provider platform.
The bonds will be listed on both the BSE and NSE, providing liquidity for investors.
Shares of Power Grid Corporation fell as much as 2.77% to Rs. 320.65 apiece during trading on Wednesday, following the announcement.
Earlier, in November, the company awarded KEC International Ltd. transmission and distribution orders worth Rs. 1,704 crore.
Power Grid Corp Share Price Today
Power Grid Corp stock fell as much as 2.77% during the day to Rs 320.65 apiece on the NSE. It was trading 2.58% lower at Rs 321.30 apiece, compared to an 0.59% decline in the benchmark Nifty 50 as of 1:58 p.m.
It has risen 38.67% in the last 12 months and 35.6% on a year-to-date basis. The relative strength index was at 42.87.
Thirteen out of the 22 analysts tracking the PSU have a 'buy' rating on the stock, two recommend a 'hold' and seven suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 346.33, implying an upside of 7.9%.
