NTPC Gets Shareholders’ Nod to Raise Rs 15000 Cr via Bonds

NTPC Gets Shareholders’ Nod to Raise Rs 15000 Cr via Bonds

NTPC Ltd has announced that it has got the shareholders’ approval to raise up to Rs 15,000 crore through the issuance of bonds.

NTPC Ltd has announced that it has got the shareholders’ approval to raise up to Rs 15,000 crore through the issuance of bonds. The funds are proposed to be raised on a private placement basis in one or more tranches not exceeding 30, as per the company’s notice for the annual general meeting (AGM) held on September 24, 2020.

“The special resolution for AGM which proposed to make offers or invitations to subscribe to the secured/unsecured, redeemable, taxable/tax-free, cumulative/non-cumulative, non-convertible debentures up to Rs 15,000 crore, was passed with a requisite majority in the AGM,” NTPC said in a BSE filing.

The funds would be raised for capital expenditure, working capital and general corporate purposes, in the domestic market.

The company also got members’ approval to amend the Memorandum of Association (MoA) to provide focus on new business segments like e-mobility, waste-to-energy, manufacturing of value-added products from fly ash, gypsum, etc. and seawater desalination.

Presently, these businesses are covered under allied/ancillary industries, which means there is no specific provision regarding these segments in the MoA. As NTPC is venturing into these areas in a big way, it was proposed to include a specific enabling provisions regarding these new business segments in the objects clause of the company.

Recently, we had reported that the largest coal-fired power producer in the country proposes to completely stop land acquisition for greenfield thermal projects and rather look for reducing its carbon footprint through an aggressive renewable energy push. “We have taken the decision not to acquire any further land for greenfield thermal projects in near future and the focus will be on reducing the carbon footprint,” NTPC chairman Gurdeep Singh said in a statement to the shareholders at a recently concluded AGM.

As part of its initiative to transform itself into a renewable player, NTPC has also decided to set up a separate green-focused subsidiary.

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