Shares of NTPC surge nearly 4% on NCD issue worth Rs 1500 cr

Shares of NTPC, (formerly known as National Thermal Power Corporation), zoomed nearly 4 per cent in Thursday intraday trade. The Indian public sector undertaking is engaged in the generation of electricity and other activities. 

The stock of the power PSU was trading 3.65 per cent higher at Rs 324.75 intraday. The NTPC share had hit a 52 week high on March 06 reaching Rs 360 - the company’s share price has rallied over 83 per cent in the last one year till March 21.

The recent hike in the stock price comes on the back of issuance of non-convertible debentures worth Rs 1,500 crore on Wednesday. India’s largest energy conglomerate has issued the NCDs via private placement at a coupon of 7.48 per cent per annum for a tenor of 2 years, maturing on 21.03.2026. 

The company in an exchange filing said that its proceeds will be utilised for, inter alia, funding of capital expenditure, refinancing of existing loans and other general corporate purposes. 

The debentures are proposed to be listed on BSE. “Debenture Trust Deed will be duly executed as per the requirements of and within the period of time prescribed under the Companies Act and rules specified therein. These debentures are being issued under the recommendation of board resolution dated 24.06.2023 and subsequent approval obtained through shareholders’ resolution dated 30.08.2023,” the company’s filing said.

On March 18, the company declared the second unit at North Karanpura Super Thermal Power Project commercially operational. With this, standalone and group commercial capacity of NTPC will become 59,298 MW and 75,418 MW respectively. 

Earlier this month, the company also signed a joint venture agreement with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for development of renewable power parks.