Bond issued by the India's largest power generating company NTPC Ltd were oversubscribed by 2.5 times. The company issued its 62nd series of taxable secured non-convertible debentures on Friday with bullet repayment after 10 years. It received bids amounting to Rs 1,250 crore, against the issue size of Rs 500 crore.
After creating pricing tension, coupon of 7.58 per cent per annum was achieved which was inside of corporate 10-year 'AAA' yield curve by 12 basis points (bps) and an amount of Rs 800 crore was allocated to successful bidders, NTPC stated.
The bidding was conducted on the Electronic Bidding Platform of the National Stock Exchange under the guidelines issued by the Securities and Exchange of India (Sebi) for adopting electronic book mechanism for issuance of debt securities on private placement basis.
The proceeds of the issue will be utilised for capital expenditure. NTPC has planned capital expenditure of Rs 30,000 crore for FY17. “Around Rs 6,000-7,000 crore we would raise from international bond markets, the balance would come from domestic sources,” NTPC officials had told the paper earlier. The company’s cash reserves stood at Rs 4,000 crore for the financial year ending March 2016.
NTPC bond issue of Rs 750 crore in May this year was also oversubscribed by 1.74 times.
