Ntpc To Seek Float Sop

The National Thermal Power Corporation (NTPC) board will seek a waiver from the Securities and Exchange Board of India (Sebi) on the stipulation that a minimum 10 per cent of the paid-up capital be offered at its public issue.

NTPC is planning an initial public offering (IPO) of around Rs 1,500-Rs 2,000 crore. The float plan was cleared by the board today.

According to government officials, the issue of raising the utility's authorised capital from Rs 8,000 crore to Rs 10,000 crore and splitting of its share from Rs 1,000 face value to Rs 10 was also cleared by the board.

The NTPC board on Tuesday cleared a slew of proposals including the initial public offering, the setting up of a joint venture with Bharat Heavy Electricals Ltd for executing engineering, procurement and construction (EPC) contracts and taking up maintenance work in the power sector.

It also cleared proposals to diversify into a number of new fields including power trading and setting up of small hydro projects of up to 250 mw.

The board accorded an in-principle clearance to the thermal utility diversifying into new business areas in the power sector through fully-owned subsidiaries and also cleared the proposed joint venture with Bharat Heavy Electricals, a company official said.

"The proposed joint venture between NTPC and Bharat Heavy Electricals will bring together synergies of both the public sector companies," a senior government official said.

As per the arrangement, Bharat Heavy Electricals would provide the equipment while NTPC would use its technical expertise to execute the EPC projects.

NTPC has already firmed up plan to enter into the distribution business through a wholly owned subsidiary.

The execution of a joint venture thermal project with Tamil Nadu Electricity Board was also taken up in the board meeting, officials said.