The proposed fundraising would be carried out through secured or unsecured, taxable or tax-free, redeemable, non-convertible debentures (NCDs), subject to shareholder approval.
This development comes shortly after NTPC announced plans to issue Rs 4,000 crore worth of NCDs on June 17 via private placement. These bonds carry a coupon rate of 6.89% per annum and will mature on June 18, 2035 — a tenor of 10 years and one day.
The funds raised are intended for capital expenditure, refinancing of existing loans, and general corporate purposes. The instruments are expected to be listed on the National Stock Exchange (NSE).
Last week, NTPC completed trial operations of Unit-3 (660 MW) at its North Karanpura Super Thermal Power Project in Jharkhand. With this, the company’s total installed capacity now stands at 81,368 MW on a group basis and 60,266 MW on a standalone basis. The plant in Chatra district comprises three units of 660 MW each.
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Q4 Financial Performance
For the fourth quarter of FY24, NTPC reported a 22.6% sequential rise in consolidated net profit at Rs 5,778 crore. Revenue for the quarter came in at Rs 43,903.7 crore, up 6% quarter-on-quarter.
However, operating performance showed some weakness. EBITDA declined 6% QoQ to Rs 11,255 crore, while operating margins slipped to 25.6% from 28.9%.
The company declared a final dividend of Rs 3.35 per share, in addition to two interim dividends of Rs 2.50 each paid earlier in the fiscal year.
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NTPC Share Price Target
According to Trendlyne, the average target price for NTPC stands at Rs 416, suggesting an upside potential of around 25% from current levels. Of the 26 analysts covering the stock, the consensus rating is ‘Buy’.
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On the technical front, the Relative Strength Index (RSI) stands at 44.2 — below the overbought mark of 70 but not in oversold territory (below 30). The MACD is at 3.3 and remains below both its signal and centre lines, indicating a bearish trend.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
