NTPC To Seek Shareholder Nod To Raise Rs 15,000 Crore Via Bonds
NTPC will also seek shareholders’ approval to increase its borrowing limit to Rs 2 lakh crore, at its AGM on August 21.
State-owned NTPC Ltd. will seek in August shareholders' approval to raise Rs 15,000 crore through issuance of bonds or debentures and hike its borrowing limit to Rs 2 lakh crore. NTPC’s next annual general meeting is scheduled for Aug. 21, 2019.
The funds raised from the bond issue—on a private placement basis in the domestic market—will be earmarked for capital expenditure, working capital and general corporate purposes, an NTPC notice for the AGM stated.
NTPC will also seek shareholders' approval to increase its borrowing limit from Rs 1.5 lakh crore to Rs 2 lakh crore.
According to NTPC’s estimates, on the basis of capital outlay envisaged, the proposed debt requirement of both ongoing projects and new projects up to 2022 will be about Rs 2 lakh crore, which will exceed paid-up share capital, free reserves and securities premium of the company.
On Monday, NTPC shares rose 0.89 percent to Rs 131.00 apiece on the BSE while the benchmark Sensex shed 0.80 percent to end the day at 38,031.13 points.