Friday 12 July 2013

NTPC to raise Rs 2,500 crore through issue of tax-free bonds

NTPC is currently trading at Rs. 144.65, up by 0.90 points or 0.53% from its previous closing of Rs. 143.75 on the BSE.

The scrip opened at Rs. 143.90 and has touched a high and low of Rs. 145.40 and Rs. 141.80 respectively. So far 24058 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 175.35 on 12-Sep-2012 and a 52 week low of Rs. 136.10 on 21-Mar-2013.

Last one week high and low of the scrip stood at Rs. 146.00 and Rs. 139.00 respectively. The current market cap of the company is Rs. 118817.14 crore.

The promoters holding in the company stood at 75.00% while Institutions and Non-Institutions held 20.16% and 4.84% respectively.

State-run power generation utility NTPC is reportedly planning to raise Rs 2,500 crore via issue of tax-free bonds this fiscal to fund its capital expenditure needs. This bond issue will be the first of the Rs 50,000 crore tax-free infrastructure bonds that the government has proposed to issue during the Union Budget 2013-14.

The company has approached the government for permission to issue the bonds with maturity periods ranging from 10-20 years due to the long time power projects take to build.

The company, which expects to incur a capital expenditure of Rs 20,200 crore in 2013-14 on various heads, expects to fund Rs 7,959 crore of this amount from internal resources and raise debt of Rs 12,241 crore. The bonds would form part of the debt component.

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