NTPC to raise Rs. 15000 crore via bonds

Shares of NTPC surged nearly 4 per cent as the market participants cheered reports that the state-run power company received shareholders' approval to raise up to Rs. 15,000 crore. The company announced that the company can raise the said amount through issuance of bonds.

The company got this approval through a special resolution to raise funds through issue of bonds/debentures on private placement basis in the domestic market at its annual general meeting (AGM) held on Wednesday.

According to the AGM notice, the funds raised through the bonds issue will be utilised for capital expenditure, working capital and general corporate purposes.

NTPC has also got shareholders' approval to increase its borrowing limit to Rs. 2 lakh crore from Rs. 1.5 lakh crore.

According to the company,  the proposed debt requirement of both ongoing and new projects up to 2022 will be about Rs. 2 lakh crore, which will exceed the paid up share capital, free reserves and securities premium of the firm.

The company is planning to be the country’s second-largest coal producer after Coal India by producing over 100 million tonnes per annum (MTPA) of coal from the 11 coal blocks allocated to the firm.

On Friday, the stock of the company closed at Rs. 118.50, higher by 3.36 per cent or Rs. 3.85 on the BSE. The stock hit its intraday high of Rs. 118.90 and intraday low of Rs. 114.05. The 52-week high is Rs. 146.25 and 52-week low is Rs. 106.75.