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NTPC to raise Rs 1,750 cr through first bond issue in 2 decades

December 2: NTPC Ltd, India's largest power utility, is going to raise Rs 1,750 crore through the issuance of its first bond issue in two decades.

The issue size is Rs 1,000 crore and there is option to retain oversubscription up to Rs 750 crore, a company statement said on December 2.

The nature of the issue will be tax-free, secured, redeemable non-convertible bonds in the nature of debentures having tax benefit under Section 10(15)(iv)(h) of the Income Tax Act, 1961.

The issue will open on December 3 and close on December 16, the statement said.

The tenure of investments is 10 to 20 years, and the coupon rate will vary from 8.41% to 8.91% depending on the tenure and investor category.

The allocation ratio will be 10% for qualified institutional buyers, 25% for corporates, 25% for HNI/HUFs (with investments of more than Rs 10,00,000) and the remaining 40% for retail investors. Allotment will be done on first come first served basis.