To raise borrowing limit to Rs 2 lakh crore, state-owned NTPC will seek shareholders’ approvals to raise Rs 15,000 crore through issuance of bonds or debentures, next month. It will be through a special resolution through the issue of bonds/debentures on private placement basis in the domestic market.
An NTPC notice for AGM said that the funds will be used for Capex, working capital and general corporate purposes. Also, the company needs to borrow to meet its working capital requirement which is partly projected to be met through the issuance of non-convertible bonds in addition to capital expenditure requirement, it added.
As per the estimates, the company said that based on capital outlay foresight, the proposed debt requirement of both ongoing projects and new projects up to 2022 will be about Rs 2 lakh crore, which will exceed paid-up free reserves, share capital and securities premium of the company.
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