NTPC Plans to Raise Up to Rs 18,000 Crore via Bonds; Board to Meet on June 21

State-run power utility NTPC Limited is set to consider raising up to Rs 18,000 crore through bond issuances at its upcoming board meeting scheduled for June 21, 2025. The company disclosed the development in a filing to stock exchanges on Monday.

The proposed fundraising would involve issuing secured or unsecured, taxable or tax-free, redeemable, non-convertible debentures (NCDs), subject to the approval of shareholders.

This development follows NTPC’s recent announcement to issue Rs 4,000 crore worth of NCDs on June 17 through private placement. These bonds will carry an annual coupon rate of 6.89 percent with a maturity period of ten years and one day, ending on June 18, 2035. The proceeds from these instruments are intended for capital expenditure, refinancing of existing loans, and general corporate purposes. The NCDs will be listed on the National Stock Exchange.

Separately, NTPC recently completed trial operations of Unit-3 with a capacity of 660 megawatts at its North Karanpura Super Thermal Power Project in Jharkhand. Located in the Chatra district, the coal-based power project includes three units of 660 megawatts each. With this addition, NTPC’s total installed capacity now stands at 81,368 megawatts on a group level and 60,266 megawatts standalone.

On the financial front, NTPC reported a consolidated net profit of Rs 5,778 crore for the fourth quarter of FY24, marking a 22.6 percent rise quarter-on-quarter. However, the figure was slightly below market expectations, which had estimated a profit of Rs 5,810 crore. Revenue for the quarter stood at Rs 43,903.7 crore, a 6 percent increase sequentially, but also short of analyst projections.

The company’s operating performance was weaker, with EBITDA falling 6 percent quarter-on-quarter to Rs 11,255 crore. Operating margins declined to 25.6 percent from 28.9 percent in the previous quarter.

NTPC also declared a final dividend of Rs 3.35 per share, in addition to two interim dividends of Rs 2.50 each already paid during the financial year.

Ahead of the board meeting announcement, NTPC shares closed at Rs 333.75 on the Bombay Stock Exchange, up Rs 1.75 or 0.53 percent