Companies

NTPC to seek shareholders nod to raise ₹ 15,000 cr via bonds

PTI New Delhi | Updated on July 22, 2019

It will also hike the borrowing limit

State-owned NTPC will seek shareholders’ approval to raise ₹15,000 crore through issuance of bonds or debentures and to raise borrowing limit to ₹2 lakh crore, next month.

The company will seek shareholders’ nod through a special resolution to raise funds up to ₹ 15,000 crore through issue of bonds/debentures on private placement basis in domestic market.

The funds raised will be used for capex, working capital and general corporate purposes, an NTPC notice for AGM said.

In addition to capital expenditure requirement, the company also needs to borrow to meet its working capital requirement which is partly proposed to be met through issuance of non-convertible bonds, it added.

NTPC will also seek shareholders’ approval to increase borrowing limit of the company from ₹1.5 lakh crore to ₹ 2 lakh crore. The next AGM is scheduled for August 21, 2019.

The company said that as per estimates, on the basis of capital outlay envisaged, the proposed debt requirement of both ongoing projects and new projects up to 2022 will be about ₹ 2 lakh crore, which will exceed paid up share capital, free reserves and securities premium of the company.

Published on July 22, 2019

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