The state-owned electricity company NTPC announced on Friday that it has received approval from shareholders to fund up to Rs 12,000 crore by issuing non-convertible debentures (NCDs) through private placement.
The corporation stated in a BSE filing that “all resolutions proposed at the 48th Annual General Meeting were passed with requisite majority.”
The AGM notification of NTPC had noted that the board of directors of the company, in its meeting on June 29, 2024, had approved the proposal and recommended that the proposed special resolution (for raising up to Rs 12,000 crore in the next 12 months) be passed.
The notice also stated that the company is in a capacity expansion mode and that debt financing will be necessary to cover the majority of its required capital expenditures.
In order to allow the board of directors to issue offers or invitations to subscribe for secured or unsecured, redeemable, taxable or tax-free, cumulative or non-cumulative, non-convertible debentures (NCDs/bonds) up to Rs 12,000 crore in one or more tranches, the shareholders’ approval is being sought, according to the statement made earlier.