State-owned Power Grid Corporation of India Ltd. is planning to raise up to Rs 600 crore through issuance of bonds on private placement basis.

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The committee of directors for bonds in its meeting on March 24 approved the raising of unsecured, non-convertible, non-cumulative, redeemable, taxable Power Grid bonds issue on private placement upto Rs 600 crore by securitisation of cash flows of 10 years until financial year 2032-33 of its operational SPV -- Power Grid ND Transmission Ltd.

The base issue size will be Rs 100 crore with green shoe option of Rs 500 crore taking the aggregate size to Rs 600 crore, Power Grid informed the bourses.

The company said that bonds will be redeemable at par in 40 equal instalments and interest payment on quarterly basis. The bonds will be listed on the BSE and NSE.

Earlier this month, the company's board of directors gave investment approvals for two projects to the tune of nearly Rs 4,071 crore -- the eastern region expansion scheme and transmission system for Kurnool wind energy zone or solar energy zone.

In the December quarter, the central transmission utility posted a nearly 11 percent increase in its consolidated net profit at Rs 3,645.34 crore compared to Rs 3,292.97 crore in the year-ago period, mainly on the back of higher revenues.

Shares of Power Grid are trading 0.2 percent higher at Rs 222.65.

(Edited by : Rukmani Krishna)