Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  NTPC plans to raise Rs13,000 crore via private placement
BackBack

NTPC plans to raise Rs13,000 crore via private placement

The firm has sought shareholder approval to raise the amount, which would be used for capital expenditure

NTPC projects are generally funded by debt and equity in the ratio of 70:30. Currently, the it has an installed power generation capacity of 43,128 megawatts (MW). Photo: BloombergPremium
NTPC projects are generally funded by debt and equity in the ratio of 70:30. Currently, the it has an installed power generation capacity of 43,128 megawatts (MW). Photo: Bloomberg

New Delhi: India’s largest power producer NTPC Ltd has sought shareholders’ approval for raising up to 13,000 crore through issue of securities.

The proceeds would be mainly used for capital expenditure (capex) as the company is “under a rapid capacity expansion mode". The power utility is looking to raise up to 13,000 crore through private placement of securities, according to the notice sent by the company to shareholders for the annual general meeting.

The meeting is scheduled for 27 August.

“Approval of the shareholders is being sought to authorize the board of directors to make offers or invitations to subscribe to the secure/unsecured, redeemable, taxable/tax-free, cumulative/ non-cumulative, non-convertible debentures up to 13,000 crore," the notice said.

The amount could be raised in one or more tranches, through private placement, in “domestic and or in international markets", it added.

It would be valid for one year from the date of getting the shareholders’ approval or till the date of the annual general meeting (in 2015-16), whichever is earlier.

The fund-raising proposal was approved by the NTPC board during a meeting held on 11 July.

NTPC projects are generally funded by debt and equity in the ratio of 70:30.

“As the company is under a rapid capacity expansion mode, major portion of capital expenditure requirement of the company has to be funded by debt," the notice said.

NTPC borrows by way of non-convertible bonds, debentures, rupee term loans from banks and financial institutions, foreign currency borrowings and foreign currency bonds, among others.

“The non convertible bonds/ debentures/ foreign currency bonds are issued by the company under public issue route or through private placement basis," the notice said.

Currently, NTPC has an installed power generation capacity of 43,128 megawatts (MW).

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 30 Jul 2014, 08:09 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App