 "NTPC's NCD bonds oversubscribed by 2.8 times")
NTPC's offer to subscribe to its 60th series of non-convertible debentures (NCDs) was oversubscribed by 2.8 times in just 10 minutes of its issuance.
The NCDs were for an amount for an amount of Rs 500 crore with a green shoe option of another Rs 500 crore on a private placement basis.
The company said bids amounting to Rs 1,400 crore were received from 17 applicants."Finally, nine arrangers were allocated Rs 1,000 crore based on their offers," NTPC said in a public statement.
Considering that the issue has a tenure of 10 years, the pricing of the issue was very competitive at 8.05 per cent a year, translating to approximately 7.89 per cent semi-annually.
The proceeds of the issue will be used for capital expenditure of the company.
In August last year, tax-free bonds of NTPC of Rs 300 crore was oversubscribed by 7.25 times across the different tenures.