Investors Take Notice! NTPC’s ₹40 Billion Debenture Issue Signals Big Moves

Image Source: PSU Watch

NTPC Limited, India's largest power sector utility firm, has scheduled raising of ₹40 billion of unsecured nonconvertible debentures (NCDs) in a private placement. The proceeds will be used for capital expenditure, repayment of loans, and general corporate purposes.

Key Highlights:

Issue Size: ₹40 billion (₹4,000 crore)
Type: Nonconvertible, nonsecured debentures
Placement Mode: Private Placement
Coupon Rate: 7.26% annually
Tenure: 15 years, falling due on March 20, 2040
Listing: Recommended on the National Stock Exchange (NSE)

This is the first tranche of NTPC under the board approval in June 2024 on which the approval of the shareholders was obtained in August 2024. The company is attempting to raise its capital base and finance current infrastructure projects.

NTPC has been working hard to raise funds to add to its clean energy portfolio, such as investments in solar and wind power schemes. The latest issue of debentures follows its strategy of keeping itself liquid and tapping debt financing.

Market analysts perceive strong investor appetite, given NTPC's good credit profile and government backing. The move is seen as strategic in order to cater to longterm financial health as well as address India's increasing energy requirements.

Source: PSU Watch, Business Standard, NTPC Official Announcements