NTPC to seek shareholder nod to raise Rs 15K crore, hike borrowing limit

NTPC Limited

State-owned National Thermal Power Corporation will seek shareholders' approval to raise Rs 15,000 crore through issuance of bonds or debentures and to raise borrowing limit to Rs 2 trillion, next month.

The company will seek shareholders' nod through a special resolution to raise funds up to Rs 15,000 crore through issue of bonds/debentures on private placement basis in domestic market.

The funds raised will be used for capex, working capital and general corporate purposes, an NTPC notice for annual general meeting (AGM) said.

In addition to capital expenditure requirement, the company also needs to borrow to meet its working capital requirement which is partly proposed to be met through issuance of non-convertible bonds, it added.

NTPC will also seek shareholders' approval to increase borrowing limit of the company from Rs 1.5 lakh crore to Rs 2 trillion.

The next AGM is scheduled for August 2nt1, 2019.

The company said that as per estimates, on the basis of capital outlay envisaged, the proposed debt requirement of both ongoing projects and new projects up to 2022 will be about Rs 2 trillion, which will exceed paid up share capital, free reserves and securities premium of the company.