NTPC gains after strong response to tax-free bonds issue

NTPC rose 0.58% to Rs 122.05 at 15:20 IST on BSE after the company said it pre-closed the public issue of tax free bonds today, 24 September 2015, in view of oversubscription.

The company made announcement during market hours today, 24 September 2015.

Meanwhile, the BSE Sensex was up 30.05 points, or 0.12%, to 25,853.04.

On BSE, so far 1.77 lakh shares were traded in the counter, compared with an average volume of 2.5 lakh shares in the past one quarter.

The stock hit a high of Rs 122.80 and a low of Rs 120.30 so far during the day. The stock hit a 52-week high of Rs 164.70 on 12 March 2015. The stock hit a 52-week low of Rs 107.20 on 25 August 2015.

The stock had outperformed the market over the past one month till 23 September 2015, falling 1.7% compared with Sensex's 5.64% fall. The stock had however underperformed the market in past one quarter, dropping 12.79% as against Sensex's 7.13% fall.

The large-cap company has an equity capital of Rs 8245.46 crore. Face value per share is Rs 10.

In a press release issued after market hours yesterday's 23 September 2015, NTPC said its public issue of tax free bonds has received a thumping response from all categories of investors especially retail category. The issue opened on 23 September 2015 at 10:00 IST and was over-subscribed in the first half an hour. By the end of Day 1 i.e. by 17:00 IST, the issue was oversubscribed by 11.04 times of the base issue size of Rs 400 crore and 6.31 times of the overall issue size of Rs 700 crore. The retail portion was oversubscribed by 6.6 times (of the total issue size allocated to retail), reflecting a huge confidence of retail investors in the company.

A total demand of over Rs 4400 crore was generated against the issue size of Rs 700 crore. NTPC's issue was the first tax free bond issuance in this fiscal year ending 31 March 2016 (FY 2016).

The government has authorised the company to raise Rs 1000 crore through tax free bonds, including Rs 700 crore through public issue. The issue was for an amount of Rs 400 crore (base issue size) with an option to retain over subscription of up to Rs 300 crore for issuance of additional bonds aggregating a total of up to Rs 700 crore (issue size) fiscal 2016 (issue).

NTPC's net profit fell 3% to Rs 2135.35 crore on 5.9% decline in net sales to Rs 17018.69 crore in Q1 June 2015 over Q1 June 2014.

NTPC, India's largest power company, has presence in the entire value chain of power generation business. The Government of India (GoI) currently holds 74.96% stake in NTPC (as per the shareholding pattern as on 30 June 2015).

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