NTPC proposes another FPO; to raise around Rs1,50,000 crore
17 Dec 2010
National Thermal Power Corporation Ltd (NTPC), the country's largest power producer, is expected to come out with a second follow-on share sale next fiscal to part finance equipment purchases worth around Rs1,50,000 crore.
The state-run power utility had raised over Rs8,000 crore through a follow-on offer in February this year.
NTPC, which plans to ramp up annual generation capacity to 75,000 MW by 2017 from the present 32,700 MW, is expected to seek government nod next fiscal for the second follow-on public offer, power ministry sources said.
The proposal, however, is still at a nascent stage and the extent to which the government may divest stake or NTPC would issue fresh equity under the FPO is yet to be decided.
NTPC, which recently tied up loans worth $300 million with Bank of Tokyo-Mitsubishi UFJ to part-finance its ongoing and new projects, may also look at raising money from overseas markets.
NTPC is planning to set up two more power stations, with a combined capacity of 2,980 MW, at Katwa and Bandel in Bengal.