NTPC scrip gains on Rs15,000-cr debt issue proposal
24 Aug 2016
Shares of state-owned power generator NTPC soared after the company announced a Rs800 crore mop-up through issue of debentures and plans to raise further debt of up to Rs15,000 crore in the current financial year (FY17).
NTPC shares gained nearly 3 per cent in morning deals after the company announced plans to raise up to Rs15,000 crore through issuance of debentures or bonds on private placement basis.
The amount will be raised in one or more tranches through private placement, in domestic market and the proceeds will be used for meeting working capital and other general corporate requirements, the company stated in a stock market filing.
NTPC also announced raising Rs800 crore through issue of debentures on a private placement basis.
"NTPC has raised Rs800 crore on August 23, 2016 through private placement of secured non-convertible debentures at a coupon of 7.58 per cent per annum with a door to door maturity of 10 years," the company has informed BSE.
The proceeds will be used to finance capital expenditure / refinancing the debt requirement in on-going projects, including recoupment of expenditure already incurred, it added.
NTPC also said its board has approved an increase in its present generating capacity and has recommended issuing debt of up to Rs15,000 crore in the current financial year (FY17).
The 40th annual general meeting of the company on 20 September is expected to approve increase in capacity and bond issue, it added.
Once approved, the funds would be mobilised during the period commencing from the date of passing of special resolution till completion of one year thereof or the date of next AGM in 2017-18 fiscal, whichever is earlier.
Shares of NTPC were trading at Rs162.25 at 11:45 am, and was up at Rs161.25, showing a gain of Rs2.45 (1.54 per cent) from the previous day.
The scrip opened the day at Rs159 and has touched a high and low of Rs 163.40 and Rs 159, respectively, in trade so far.