NTPC issues bonus debentures worth over Rs 10,000 crore

State-run NTPC has issued bonus debentures worth over Rs 10,000 crore to its existing shareholders, including Rs 7,726 crore to the central government, for funding its expansion plans.
The issue size of the bonus debenture is of Rs 10,306.83 crore and it carries the Coupon Rate of 8.49 per cent per annum payable annually, NTPC said in a statement.
NTPC has issued, by way of bonus, one fully paid-up, secured debenture of Rs 12.50 each, for every one fully paid-up equity share of Rs 10 each held by its members.
The central government has received 618.06 crore bonus debentures amounting to Rs 7,725.76 crore by virtue of its 74.96 per cent shareholding in NTPC.

In addition to the bonus debentures, the government has also received Rs 2,060.75 crore as dividend distribution tax on the debentures.
The debentures are a part of company's exercise to borrow Rs 15,000 crore for the next financial year (2015-16).

They will provide a fixed coupon bearing and can be monetised on stock exchanges by selling them to shareholders, as the company proposes to list them on BSE and NSE.
The debentures will be redeemed at the end of 8th, 9th and 10th year in the ratio of 20 per cent, 40 per cent and 40 per cent of the face value, respectively.

Meanwhile, NTPC's fund raising plan also includes USD 750 million through external commercial borrowings (ECBs) in the next fiscal.
Shares of the company closed at Rs 143.85, down 2.31 per cent on the BSE.