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NTPC’s Rs 1,750 crore tax-free bond issue to open today

This is the state-run company's first bond issue after a gap of over 20 years.

'The issue will open on 3 December, 2013, and is scheduled to close on 16 December, 2013,' NTPC chairman and managing director Arup Roy Choudhury told reporters here at a company's conference.
Under the offer, the company will issue tax-free secured redeemable non-convertible bonds.

'The base issue size aggregates to Rs 1,000 crore with an option to retain over-subscription up to Rs 750 crore for issuance of additional bonds, aggregating to up to Rs 1,750 crore,' the company said.
The funds raised through the issue would be utilised towards funding of capital expenditure and refinancing for meeting the debt requirement in ongoing projects.

The company, last month, filed a prospectus with the Registrar of Companies (RoC), Delhi and Haryana and shall file the Prospectus with the BSE, NSE and Sebi (Securities and Exchange Board of India) in connection with its proposed public issue of tax-free secured redeemable non-convertible bonds, NTPC said.

The lead managers to the issue are ICICI Securities, A K Capital Services, Axis Capital, SBI Capital Markets and Kotak Mahindra Capital Company.

Currently, NTPC has a capacity of nearly 42,000 MW and targets to add about 14,000 MW to its total capacity by the end of 2016-17.

SBI to raise $1.53 bn via FPO


Mumbai: The nation’s largest lender State Bank of India (SBI) has decided to raise up to Rs 9,576 crore or $1.53 billion through a share sale to institutional investors or a follow-on public offer (FPO), the bank said in an exchange filing here on Monday.

The bank also plans to raise another Rs 2,000 crore through a share sale to the government on a preferential basis as part of the capital infusion announced by the finance ministry. The government held 62.31 per cent in the bank at the end of the September.

While the government cannot reduce its holding in state-run banks to below 51 per cent, the union government had decided not to lower its holding to less than 58 per cent in any of the 26 banks.

SBI said the board’s decision is subject to approvals from shareholders, the government and the Reserve Bank of India. Accordingly, the bank has decided to hold a shareholders’ meeting on 30 December.

The placement of shares to qualified institutional investors or the follow-on public offer worth Rs 9,576 crore is subject to both government and Reserve Bank of India (RBI) nods, the bank said.

CIL produces 39-MT coal in November


NEW DELHI: State-owned Coal India Ltd (CIL) has achieved output of 39.20 million tonnes (mt) in November, missing its production target of 41.93 MT. It achieved coal offtake of 38.76 MT in November, as against the target of 41.65 MT, Coal India Ltd said in a filing to the BSE. No reasons were given by the company for missing the November targets.

In the first eight months of the current fiscal, CIL output was 274.71 million tonnes, as against the April-November target of 289.38 MT, Coal India Ltd said. CIL's offtake for April-November period was 298.63 MT, while the target was 310.43 MT.

The company has been facing criticism from various quarters for missing the production targets. It was asked last week by Coal Minister Sriprakash Jaiswal to meet its production target for the 2013-14 fiscal. The ministry has set production target of 482 MT and offtake of 492 MT for CIL for 2013-14.

The message was communicated to the company during the target review meeting held in November, according to a coal ministry official. CIL had produced 35.03 MT coal in October, missing its target of 40.82 MT. It also missed the offtake target of 41.55 MT for the month. It registered actual offtake of 35.51 MT.

According to a CIL official, the PSU had suffered production loss in October due to Cyclone Phailin, which affected the key coal producing states of Odisha, Jharkhand and West Bengal.
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