NTPC stock down 6%

The stock price of state-owned power utility NTPC ended at Rs 145.5 on the BSE on Friday, a six per cent fall compared to the previous close, as the eligibility date to receive 'bonus debentures' ended. NTPC is offering one bonus debenture for every one share held in the company. Bonus debentures are dividend-yielding securities offered in lieu of dividends. In December 2014, the company's board had approved the issue of bonus debentures from free reserves. The debentures will be listed on the exchanges and will be redeemable at the end of the 8th, 9th and 10th year in the ratio of 20 per cent, 40 per cent and 40 per cent. The coupon rate on these debentures will be adjusted every year and pegged to yields on the government securities. In a recent note, broking firm KR Choksey had projected the debentures to give between 9.25 per cent and 14 per cent yield to investors.