NTPC to Raise Rs 12,000 Crore via NCDs as Capacity Expansion Continues

NTPC, the state-owned power company, plans to raise up to Rs 12,000 crore through Non-Convertible Debentures (NCDs). Shareholders' approval will be sought at the annual general meeting on August 29. The funds are for capacity expansion, funded primarily via debt, with the approval enabling multiple tranches if necessary.

In a significant move to boost its capital, state-owned power giant NTPC will seek approval from shareholders to raise up to Rs 12,000 crore through the issuance of Non-Convertible Debentures (NCDs) on a private placement basis. This proposal will be discussed at the annual general meeting scheduled for August 29.

According to the AGM notice, the board of directors, in their meeting held on June 29, 2024, greenlighted the proposal and recommended the passing of a special resolution to raise the funds over the next 12 months.

The company is in an expansion phase, necessitating substantial capital expenditure, primarily funded through debt. Shareholder approval is sought to authorize the board to offer or invite subscriptions for secured/unsecured, redeemable, taxable/tax-free, cumulative/non-cumulative Non-Convertible Debentures (NCDs) in one or more tranches.