NTPC Limited decided to raise funds of Rs. 3,996 crores via bonds

NTPC Limited decided to raise funds of Rs. 3,996 crores via bonds

NTPC Limited: It is one of the largest electricity-generating companies in India located in New Delhi. It is also known as National Thermal Power Corporation Limited. Whereas the company provides services in electricity generation and distribution, natural gas exploration, production, transportation, and distribution. The company was incorporated under the Companies Act 1956, owned by the Ministry of Power, Government of India The present chairman & managing director (MD) of the company is Gurdeep Singh.

Meanwhile, on Friday, April 16th, the shares of the company surged almost 1% in the stock market. The main reason for this the state-owned company decided to raise funds of Rs. 3,996 crores via issuing non-convertible debentures (NCDs).

Moreover, the company decided to issue unsecured non-convertible bonds in the nature of debentures worth Rs. 3,996 crores. The company decided the record date on April 20th for the allocations of bonds via private placement.

Besides, the company also decided to issue bonds at a coupon of 6.87% per annum with a door-to-door maturity of 15 years 1 day on April 21st, 2036 respectively, said the company in the exchange filing.

Whereas the funds will be utilized for funding capital expenditure, refinancing of existing loans, and other general corporate purposes of the company. While the bonds are proposed to be listed on the NSE stock market, it added.

On the other side, the bonds issued under the approvals of shareholders on September 24th, 2020.

CLSA on NTPC

The global research firm CLSA maintained a “buy” call on the stock with a target price of Rs. 150 per equity share. The firm expects that the company will see double-digit EPS growth in the coming financial year. Moreover, the stock is trading at attractive valuations with a dividend yield above a 10-year bond.

However, the shares of NTPC Limited on Friday reported a bullish trend in the stock market. It gained 1.10 points with a 1.09% increase and reached 102.45 INR. While in BSE, the company gained 1.10 points with a 1.09% increase and reached 102.40 INR.

Stock Market on April 16th:

On Friday, both Sensex and Nifty continue their bullish trend in the stock market from the last session of the market. The Sensex is trading above 48,800 levels and nifty trading above 14,600 levels in the stock market. The Sensex gained 28.35 points with a 0.058% increase and reached 48,832.03 levels. While the nifty gained 36.40 points with a 0.25% increase and reached 14,617.85 levels.

On the other side, the number of coronavirus cases in India on Saturday, April 17th reached 1,45,26,609 with almost 1,75,649 deaths.

In the border markets, the S&P BSE Small-Cap index reported a bullish trend in the stock market on Friday. It gained 218.86 points with a 1.05% increase and reached 21,018.55 levels. But, the S&P BSE Midcap gained 233.78 points with a 1.17% increase and reached a 20,157.36 level. While the Nifty Bank lost 135.40 points with a 0.42% decrease and reached 31,977.45 level.

Top Gainers on April 16th: Wipro, Hindalco Industries, Asian Paints, UltraTech Cement, and Cipla are the top gainers in today’s stock market.

Top Losers on April 16th: JSW Steel, ICICI Bank, Larsen & Toubro, Bajaj Finance, and Tata Steel are the top losers in today’s stock market.

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