NTPC Eyes Rs 18,000 Crore in NCDs to Fuel Expansion

State-run NTPC plans to raise up to Rs 18,000 crore through non-convertible debentures in the domestic market. The initiative aims to support ongoing capacity expansion and meet working capital needs. Shareholders' approval will be sought via a postal ballot, with remote e-voting set between June 24 and July 23.

India's power behemoth NTPC is on a mission to amass a hefty Rs 18,000 crore by issuing non-convertible debentures (NCDs) through private placement in the domestic market. The state-owned entity has already issued a postal ballot notice to its shareholders, seeking their nod through a special resolution facilitated by remote e-voting.

This ambitious financial undertaking, aimed at bolstering its capacity expansion efforts, will unfold in multiple tranches not exceeding 12 within a year from the special resolution's passage. Crucially, the board deliberated on June 21 and gave the green light for the draft postal ballot notice essential to solicit shareholders' consent.

Furthermore, with a cut-off date set for June 20, 2025, current shareholders will be entitled to partake in the e-voting process starting June 24, concluding on July 23. NTPC's drive to expand its operations calls for substantial capital, and while these NCDs are intended to satiate a bulk of its capital expenditure, they are also geared towards addressing working capital needs and other corporate expenses.

(With inputs from agencies.)