NTPC to Raise Rs 700 Crore via Tax Free Bonds

New Delhi: State-run power utility NTPC will raise up to Rs 700 crore through tax free secured non-convertible bonds.

The government has approved the company's raising Rs 1,000 crore through tax free bonds, including Rs 700 crore through public issue.

"In pursuance of the notification of (government) dated July 6, 2015 authorising the Company to raise a fund of Rs 1,000 crore during the fiscal 2016, of which at least 70 per cent of the aggregate amount is to be raised through public issue, the Company is proposing a public issue of its Bonds for the Issue size," NTPC Ltd has said in a BSE filing.

According to statement, the issue will be for an amount of Rs 400 crore ("Base issue size") with an option to retain over subscription of up to Rs 300 crore for issuance of additional bonds aggregating a total of up to Rs 700 crore ("issue size") fiscal 2016 ("issue").

A draft prospectus dated September 9, has been made public for seeking their comments on the issue in compliance with the SEBI regulations.