NTPC’s tax-free bonds oversubscribed 7.25 times
21 Aug 2015 5:16 AM IST
The company further said that it targeted raising Rs 300 crore through the <g data-gr-id="49">bonds</g> but the bids were received for Rs 2,175 crore for placing the bonds on private placement route.
“NTPC has decided to retain <g data-gr-id="47">subscription</g> for 10 years of maturity at the coupon rate of 7.15 per cent pa,” the company said. <g data-gr-id="45">Government</g> had in July allowed seven state-owned entities, including NTPC, NHAI and IRFC, to raise Rs 40,000 crore in the current fiscal through tax-free bonds.
The National Highways Authority of India has been permitted to raise Rs 24,000 crore and Indian Railways Finance Corporation Rs 6,000 crore, said a notification issued by the Central Board of Direct Taxes (CBDT). Housing and Urban Development Corporation was allowed to raise Rs 5,000 crore and Indian Renewable Energy Development Agency, Rs 2,000 crore. NTPC, Power Finance Corporation and Rural Electrification Corporation can issue tax-free bonds of Rs 1,000 crore each.
Retail investors, which include HUFs and NRIs investing on repatriation basis, can invest up to Rs 10 lakh in such bonds. Those investing higher amount would be classified as HNIs. The bonds will have a tenure of 10, 15 or 20 years and the interest rates <g data-gr-id="39">is</g> to be decided with reference to the rates of Government Securities.
Meanwhile, NTPC Ltd has sought shareholders’ approval to raise Rs 5,000 crore through issuance of bonds/debentures on private placement basis in its annual general meeting next month. “The company seeks shareholders’ approval to raise funds up to Rs 5,000 crore through issuance of bonds/debentures on private placement basis in one or more tranches in domestic market,” NTPC said in a BSE filing.
According to the statement, the company will table a special resolution to raise <g data-gr-id="100">the amount of</g> Rs
5,000 crore through bonds in it Annual General Meeting on September 18.
<g data-gr-id="56">Major</g> portion of capital expenditure requirement of the company has to be funded by debt, NTPC said. It said that the projects of the company are financed by the debt equity in the ratio of 70:30. As per the statement, the board of directors has approved the proposal. It had recommended passing <g data-gr-id="53">special</g> resolution in this regard in a meeting last month.
Earlier in the day, the company said that its tax-free bonds have been oversubscribed 7.25 times. It targeted raising Rs 300 through the <g data-gr-id="38">bonds</g> but the bids were received for Rs 2,175 crore for placing the bonds on private placement route.
Shares of the company were trading at Rs 126.90 per piece, up 0.63 per cent at the BSE in the afternoon.
NHPC restores Kargil Chutak power plant’s fourth Unit
NHPC on Thursday said it has restored Unit-4 of its Chutak power station in Jammu and Kashmir, which was shut down due to <g data-gr-id="112">sudden</g> increase in the water level in June. “With reference to the earlier letter dated June 29, 2015, NHPC Ltd has now informed BSE that one unit (i.e. Unit 4) of <g data-gr-id="110">Chutak</g> Power Station has been restored on August 19, 2015,” the company said in a statement. Earlier, the company had said, “Consequent to <g data-gr-id="129">sudden</g> increase in water level in unit 3 and 4 on June 28, 2015, the Chutak power station is under <g data-gr-id="130">complete</g> shutdown.”
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