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NTPC shares are in focus following the company’s announcement to issue unsecured, non-convertible debentures (NCDs) worth Rs 4,000 crore
NTPC Shares
Shares of state-owned power giant NTPC Ltd were trading in the green territory on Wednesday morning after the company’s announcement to issue unsecured, non-convertible debentures (NCDs) worth Rs 4,000 crore on March 20, 2025, via private placement. The NCDs will carry a coupon rate of 7.26% per annum, with a maturity date set for March 20, 2040, giving them a 15-year tenure.
In the previous session, NTPC’s shares rose 1.75%, closing at Rs 337.40 on the BSE. The company’s market capitalization climbed to Rs 3.27 lakh crore, with a total turnover of Rs 5.26 crore on the exchange.
In a stock exchange filing, NTPC confirmed the issuance plans, stating: “NTPC has decided to issue unsecured non-convertible debentures worth Rs 4,000 crore on March 20, 2025, through private placement at a coupon rate of 7.26% per annum for a tenor of 15 years, maturing on March 20, 2040, under the board resolution dated June 29, 2024, and subsequent shareholder approval obtained on August 29, 2024.”
This marks the first issuance under the board resolution of June 29, 2024, with shareholder approval received on August 29, 2024.
The funds raised from the NCD issue will be utilized for capital expenditure, refinancing existing loans, and general corporate purposes.
NTPC reported a net profit of Rs 4,711.4 crore for the third quarter of FY 2024-25, slightly missing the estimate of Rs 4,822.3 crore. However, the profit showed a 3.1% year-on-year (YoY) growth, up from Rs 4,571.9 crore in Q3 FY24.
The company’s revenue for the quarter stood at Rs 41,352.3 crore, reflecting a 4.8% YoY increase from Rs 39,455 crore in the same period last year.
NTPC’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) surged by 20.3% YoY, reaching Rs 11,960.6 crore, up from Rs 9,941 crore in Q3 FY23.