NTPC board seeks shareholders nod to raise up to ₹18,000 cr via bonds

Power giant NTPC will seek shareholders' nod to raise up to ₹18,000 crore through the issuance of NCDs or bonds on private placement in the domestic market.

State-owned NTPC on Monday issued a notice of postal ballot to seek approval of the members by way of special resolution through remote e-voting regarding raising of funds through the issue of secured/ unsecured, redeemable, taxable/tax-free, cumulative/non-cumulative, non-convertible debentures (bonds/NCDs), amounting up to Rs 18,000 crore, according to a regulatory filing.

The fund will be raised in one or more tranches/series not exceeding 12, through private placement in the domestic market during the period commencing from the date of passing of the special resolution till completion of one year thereof.

On June 21, the company's board of directors considered and approved the draft notice of postal ballot in respect of seeking shareholders' approval for the issue of these NCDs.

The company fixed June 20, 2025, as the cut-off date for the purpose of reckoning the names of members entitled to receive a postal ballot notice and voting rights.

The remote e-voting will commence on June 24 and end on July 23.

As the company is under capacity expansion mode, a major portion of its capital expenditure requirements has to be funded by debt, the notice explained.

The company borrows in the form of NCDs, rupee term loans from banks and financial institutions, foreign currency borrowings, foreign currency bonds, etc.

The NCDs are raised by the company under the public issue route or through a private placement basis.

In addition to the capital expenditure requirement, the company needs to borrow to meet its working capital requirement and other general corporate purposes, which is partly proposed to be met through the issuance of NCDs.