State-owned NTPC Ltd has sought shareholders' approval to raise Rs 5,000 crore through issuance of bonds/debentures on private placement basis in its annual general meeting next month.
"The company seeks shareholders' approval to raise funds up to Rs 5,000 crore through issuance of bonds/debentures on private placement basis in one or more tranches in domestic market," NTPC said in a BSE filing.
According to the statement, the company will table a special resolution to raise the amount of Rs 5,000 crore through bonds in it Annual General Meeting on September 18.
Major portion of capital expenditure requirement of the company has to be funded by debt, NTPC said. It said that the projects of the company are financed by the debt equity in the ratio of 70:30.
As per the statement, the board of directors has approved the proposal. It had recommended passing special resolution in this regard in a meeting last month.
Earlier in the day, the company said that its tax-free bonds have been oversubscribed 7.25 times. It targeted raising Rs 300 through the bonds but the bids were received for Rs 2,175 crore for placing the bonds on private placement route.
Shares of the company were trading at Rs 126.90 per piece, up 0.63 per cent at BSE this afternoon.
