NTPC To Consider Raising Funds Worth Rs 18,000 Crore Via NCDs
A meeting of the board of directors is scheduled to be held on Saturday.
NTPC Ltd. will consider raising funds worth Rs 18,000 crore via the issue of non-convertible debentures, according to an exchange filing on Monday.
A meeting of the board of directors is scheduled to be held on Saturday to consider the issue of secured/unsecured, redeemable, taxable/tax-free, cumulative/non-cumulative NCDs, subject to approval of shareholders, it said.
The firm will issue NCDs worth Rs 4,000 crore on Tuesday. 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.
Shares of NTPC closed 0.53% higher at Rs 333.7 apiece on the National Stock Exchange before the announcement, compared to a 0.92% advance in the benchmark Nifty. The stock has fallen 9.73% in the last 12 months and risen 0.1% 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 26.4%.
