NTPC plans to raise Rs 13,000 cr

Proceeds will be mainly used for capital expenditure as the company is 'under a rapid capacity expansion mode'

Country's largest power producer NTPC has sought shareholders' nod for raising up to Rs 13,000 crore through issue of securities.

The proceeds would be mainly used for capital expenditure as the company is "under a rapid capacity expansion mode".

The power utility is looking to raise up to Rs 13,000 crore through private placement of securities, according to the notice send by the company to shareholders for the annual general meeting. The meeting is scheduled for August 27.

"... Approval of the shareholders is being sought to authorise the board of directors to make offer(s) or invitation(s) to subscribe to the secure/unsecured, redeemable, taxable/tax-free, cumulative/ non-cumulative, non-convertible debentures up to Rs 13,000 crore," the notice said.

The amount could be raised in one or more tranches, through private placement, in "domestic and or in international markets," it added.

It would be valid for one year from the date of getting shareholders' nod or till the date of annual general meeting (in 2015-16 fiscal) whichever is earlier.

The fund raising proposal was approved by NTPC board during its meeting held on July 11.

NTPC projects are generally funded by debt and equity in the ratio of 70:30.

"As the company is under a rapid capacity expansion mode, major portion of capital expenditure requirement of the company has to be funded by debt," the notice said.

NTPC borrows by way of non convertible bonds, debentures, rupee term loans from banks and financial institutions, foreign currency borrowings and foreign currency bonds, among others.

"The non convertible bonds/ debentures/ foreign currency bonds are issued by the company under public issue route or through private placement basis," the notice said.

Currently, NTPC has an installed power generation capacity of 43,128 MW.