NTPC to use IPO money for expansion
By Our Corporate Bureau | 23 Sep 2004
New
Delhi: National Thermal Power Corporation (NTPC) proposes
to use the proceeds of its initial public offering (IPO)
of 86.5 crore shares for the expansion of its generation
capacity by 6,690 mw during the 10th Plan and part of
the 11th Plan. NTPC also proposes to add about 20,000
mw by the end of 2012.
The list of projects includes Rihan (1,000 mw), Vindhyachal (1,000 mw), Kahalgaon (1,500 mw), Sipat state-I (1,980 mw), Sipat state-II (1,000 mw), Unchahar (210 mw). The corporation proposes to provide Rs11,906.9 crore for these projects.
NTPC has fixed a price band of Rs52-62 per share of Rs10 each. The 100 per cent book-built issue will open for subscription on October 7 and close on October 14, chairman and managing director CP Jain said at a press conference on Wednesday.
The equity issue comprises 43.25 crore new shares and an offer for sale of equal number of shares owned by the government.
According to Jain, the corporation will increase its presence in the hydro-power sector, power distribution and power trading. The corporation has already applied for the allotment of captive mines. After the government’s approval, Jain said that the corporation would allocate necessary funds for the proposed investments. He added that the corporation’s foray into coal mining was with the purpose of creating a buffer though it had been receiving coal as per the linkage from the coal ministry.
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