NTPC Ltd. has decided to issue unsecured non-convertible debentures worth Rs 4,000 crore on Thursday through private placement, according to an exchange filing.
The NCDs will be issued at a coupon of 7.26% per annum for a tenor of 15 years, maturing on March 20, 2040, it said on Tuesday. "This is the first issue of debentures under the above mentioned approval."
The debentures will be listed on the National Stock Exchange. Proceeds from the NCDs will be utilised for funding of capital expenditure, refinancing of existing loans and other general corporate purposes, it added.
Recently, NTPC's arm ONGC-NTPC Green Pvt., a joint venture between NTPC Green Energy Ltd. and Oil and Natural Gas Corp., stated plans of accreting more than Rs 3,800 crore in revenue from the acquisition of Ayana Renewable Power Pvt. by financial year 2027.
NTPC's consolidated net profit fell 1.8% to Rs 5,063 crore in the third quarter of the financial year due to higher current and deferred taxes. Revenue rose 5.2% to Rs 45,053 crore.
Shares of NTPC ended 1.72% higher at Rs 337.35 apiece on the NSE, compared to a 1.45% advance in the benchmark Nifty. The company has returned 6.66% gains in the last 12 months.
Out of the 25 analysts tracking the company, 21 have a 'buy' rating on the stock, two recommend 'hold' and as many suggest 'sell', according to Bloomberg data. The average of 12-month analysts price targets implies a potential upside of 22%.
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