NTPC gains after offer to buyback masala bonds from lenders

NTPC rose 1.42% to Rs 99.95 after the state-run power major made an offer to buyback its masala bonds worth Rs 4,000 crore from bondholders or lenders.

Masala bonds are issued outside India but denominated in Indian rupees, rather than the local currency.

NTPC's offer include the rupee denominated Rs 2,000-crore 7.375% notes issued on 10 August 2016, payable In USD and due on 10 August 2021 (''2021 notes''). The offer also includes rupee denominated Rs 2,000-crore 7.25% notes issued on 3 May 2017, payable in USD and due on 3 May 2022.

The 2021 notes are currently listed on Singapore Exchange Securities Trading (SGX-ST), the London Stock Exchange's Professional Securities Market, the NSE IFSC (NSE IFSC) and the India International Exchange (IFSC) (India INX).

The 2022 notes are currently listed on SGX-ST, London Stock Exchange's International Securities Market, NSE IFSC and India INX.

"The 2021 notes proposed for buyback by the company pursuant to the offers represent 20.21% of existing paid up capital. The 2022 notes proposed for buyback by the company pursuant to the offers represent 20.21% of existing paid up capital, NTPC said in a statement.

NTPC is a Maharatna company operating in the power generation business. The principal business activity of the firm is electric power generation through coal based thermal power plants. It also engages in the business of generation of electricity from hydro and renewable energy sources.

The company's consolidated net profit slipped 7.74% to Rs 3,494.61 crore on 7.77% rise in revenue from operations to Rs 27,707.76 crore in Q2 September 2020 over Q2 September 2019.

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