Around Rs 2,000 crore of non-convertible bond (NCD) issue is expected to hit the market this week.
National Thermal Power Corporation (NTPC) will enter the market tomorrow to raise Rs 500 crore through a five year non-convertible debentures. It is likely to raise the money at a book building band of 8.05 -8.30 per cent. The bonds will be redeemed at the end of the fourth and fifth year in annual installments.
Power Grid is also expected to enter the market in the next two days with a Rs 1,060 crore NCD issue with tenures ranging between six year to 16 year. The bond has two options: Rs 810 crore will be redeemed in 12 annual installments after the fourth year. The remaining issue of Rs 250 crore will be redeemed in six annual installments after one year. The book-building band is likely to be between 8.75 per cent and 9 per cent.
Both these companies have entered the market on their own. According to dealers, the NTPC issue has created more interest as because of its shorter tenure. Also even as the book-building band of the issue is between 8.05 and 8.30 the issue is likely to close at around the 8.05 level.
Grasim Industries is also expected to hit the market with a Rs 100-200 crore NCD issue of five years. Indian Railway Finance Corporation (IRFC) is also in the market for a five-year NCD issue of around Rs 200-300 crore. Sources said the issue is likely to be a bilateral agreement between the corporate and a bank. The Grasim and IRFC issues are likely to hit the market in the next few days.
