State-run power utility NTPC’s Rs. 700-crore public issue for tax-free bonds will open Sept 23.
“The company will open the public issue on September 23,” K. Biswal, Director ( Finance ) NTPC said.
“The balance amount of Rs 700 crore is being raised through public issue. 40% i.e. Rs 280 crore is reserved for allocation to retail category,” according to an official statement.
The issue is managed by 4 reputed lead managers – AK Capital, Edelweiss Financial, Axis Capital, SBI Capital and the consortium members – AK Stockmart, Edelweiss Securities, SBICAP Securities. The legal advisor to the issue is a leading legal firm – AZB & Partners.
The issue has three tenures — 10 years, 15 years and 20 years.
For retail investors, the coupon rate is 7.36% for 10 years tenure, 7.53% for 15 years and 7.62% for 20 years. Similarly for non-retail investors, the coupon rate is 7.11% for 10 years, 7.28% for 15 years and 7.37% for 20 years.
The non retail category consists of QIBs, Corporates and HNIs.
“NTPC has a history of creating records in regard to tax free Bonds. Earlier issue in December 2013 was oversubscribed by 3.67 times and we had to pre-close the issue,” Biswal said.
He added, “The company has already issued Rs 300 crore on private placement basis to institutional investors which received an overwhelming response and the issue was oversubscribed by 7.25 times.”
NTPC A Stellar Performer: Powering India’s Growth
A.K. Jha, CMD informed that NTPC is the largest power producer in India in terms of both installed capacity and generation, with aggregate installed capacity of 45,548 MW (including 39352 MW through directly owned units and 6,196 MW through Subsidiaries and Joint Ventures) as on September 10, 2015.
In addition, the Company has a capacity of 23,004 MW which is under different phases of completion as on date. NTPC’s capacity excluding renewable but including capacity of subsidiary and joint ventures represented market share of 18.77% of India’s total installed capacity and we generated 260.58 billion units of power, representing market share of 24.95% of India’s total power generation in fiscal 2015.