1 week ago
Power Grid Shares Rally After Shareholders Raise Borrowing Limit
Power Grid is a company that helps move electricity across India.
Its shareholders agreed that the company can borrow more money.
The total borrowing limit increased to Rs 2.2 lakh crore from Rs 1.8 lakh crore.
The company can also raise up to Rs 35,000 crore through privately placed bonds and debentures in 2026-27.
A similar Rs 35,000 crore borrowing plan was approved for 2027-28.
Shareholders also approved dividends and reappointed two directors.
They approved Burra Vamsi Rama Mohan as chairman and managing director.
After the decisions, Power Grid’s shares rose about 3% during trading on August 21.
Shareholders approved a Rs 40,000 crore increase in Power Grid’s overall borrowing limit to Rs 2.2 lakh crore.
The domestic private-placement debt limit for 2026-27 was raised from Rs 30,000 crore to Rs 35,000 crore.
Members also approved raising up to Rs 35,000 crore through similar instruments during 2027-28.
The AGM approved dividends, director reappointments, and auditor remuneration-related resolutions.
Power Grid shares rose 3.03% intraday on August 21, despite declines over the past month and year.
- Who
- Shareholders of Power Grid Corporation of India, along with the company’s board and management.
- What
- Shareholders approved increases in the company’s borrowing limits, along with dividend, director, and auditor-related resolutions.
- Where
- Power Grid operates India’s inter-state electricity transmission network; its registered office is in New Delhi and its corporate headquarters are in Gurugram, Haryana.
- When
- The resolutions were approved at the AGM; the share-price movement was reported on August 21, and the borrowing approvals cover financial years 2026-27 and 2027-28.
- Why
- The articles do not state a specific reason for the higher limits; shareholders approved the resolutions allowing greater borrowing and bond or debenture issuance.
Key facts
- Overall borrowing limit
- Raised from Rs 1,80,000 crore to Rs 2,20,000 crore.
- 2026-27 domestic debt limit
- Raised from Rs 30,000 crore to Rs 35,000 crore for privately placed bonds and debentures.
- 2027-28 borrowing approval
- Up to Rs 35,000 crore may be raised through similar instruments in one or more tranches.
- AGM attendance
- The meeting was attended by 181 members.
- Share performance
- Shares rose 3.03% intraday on August 21, while declining 4.62% over the past month and 3.7% over the past year.
- Dividend decision
- Members confirmed the first and second interim dividends and approved the final dividend for 2025-26.
Sources
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