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NTPC rises on acquisition of THDCIL, NEEPCO

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Last Updated : Mar 27 2020 | 3:31 PM IST

NTPC rose 3.73% at Rs 83.50 after the company on Thursday announced the Rs 11,500 crore acquisition of hydropower firms THDC India and North Eastern Electric Power Corporation (NEEPCO).

NTPC on 25 March 2020, executed a share purchase agreement (SPA) for acquiring 74.496% in THDC India (THDCIL) for Rs 7,500 crore and a 100% acquisition of North Eastern Electric Power Corporation (NEEPCO) for Rs 4,000 crore respectively.

The acquisition is subject to satisfaction of customary conditions precedent," NTPC said in its filing to the exchanges.

NEEPCO is a Mini-ratna Category I Central Public Sector Enterprise. It has operational portfolio of 1457 MW comprising hydro power generation capacity of 925 MW, gas based generation capacity of 527 MW and Solar generation capacity of 5 MW. Additionally, 600 MW Kameng Hydro Electric Project is likely to be commissioned soon.

THDCIL is a joint venture of the Government of India (74.496%) and the Government of Uttar Pradesh (25.504%) and is a Mini-ratna Category I Central Public Sector Enterprise. It has operational portfolio of 1513 MW comprising hydro power generation portfolio of 1,400 MW and wind power generation portfolio of 113 MW. Further, it has projects with aggregate capacity of 2,838 MW (1,468 MW - hydro power projects, 50 MW - solar power project and 1,320 - thermal power project) under various stages of implementation.

NTPC is a Maharatna company operating in the power generation business. The Government of India holds 54.14% stake in the company as of 31 December 2019.

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First Published: Mar 27 2020 | 2:47 PM IST

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