NTPC To Issue NCDs Worth Rs 4,000 Crore For Capex And Loan Refinancing

NTPC Ltd. will issue non-convertible debentures worth Rs 4,000 crore on June 17, according to a stock exchange filing on Friday. This will be done through the issue of private placement at a coupon of 6.89% per annum for a tenor of 10 years and one day.

The NCD will mature on June 18, 2035, under the board resolution dated June 29, 2024, and subsequent approval obtained through the shareholders’ resolution dated Aug. 29, 2024.

The proceeds from the NCDs will be used for funding capital expenditure, refinancing of existing loans and other general corporate purposes, the filing said.

This is the third issue of debentures under the approval. The NCDs are proposed to be listed on the National Stock Exchange.

State-run power major has planned a capital expenditure of Rs 55,920 crore at the group level and add capacity of 11,806 megawatt in FY26. The group capex spend would see an increase of 25.3% year-on-year from Rs 44,636 crore in FY25.

Shares of NTPC closed 0.57% lower at Rs 331.95 apiece on the NSE, compared to a 0.68% fall in the benchmark Nifty. The stock has fallen 10% in the last 12 months and 0.42% on a year-to-date basis.

Out of 27 analysts tracking the company, 23 have a 'buy' rating on the stock, two recommend 'hold' and two suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 27%.