NTPC up 5.37% on good response to bond issue

DALAL STREET SPIKES

NTPC jumped 5.37 per cent to Rs 129.45 owing to a solid response to its dollar denominated bond issue. 19.5 lakh shares were traded on the BSE.

The stock has gained 16.67 per cent since 2nd Jan 2006. A $300 million bond offer by NTPC had attracted over $800 million in orders so far.

The debt offer is part of NTPC's newly set up $1 billion medium term note programme. The proceeds from the bond issue will fund NTPC's capital expansion plans in the power sector.

NTPC posted a 30 per cent jump in net profit to Rs 1,781.70 crore for the period ending December 2005 on YoY basis. The net sales for the same period jumped 21 per cent to Rs 6,868.90 crore on YoY basis.

The company has received government approval for allocation of seven coal blocks. Two blocks, Brahmin(1,900 million tonne) and Chichro Patsimal(356 million tonne), have been allocated for developing the same by 50:50 joint venture between NTPC and Coal India. NTPC had an installed capacity of 23,935 megawatt till December 2005.