Maharatna PSU Stock to Track: Shareholders approve Rs 18,000-crore fund-raise through NCDs

Maharatna PSU Stock News: NTPC–a Maharatna PSU power generation company–has secured shareholders’ nod to raise up to Rs 18,000 crore. In a regulatory filing post-market hours on Thursday, the company said the proposed fund-raising will take place through non-convertible debentures (NCDs) through private placement. 

The resolution was passed with the requisite majority, according to the filing. The remote e-voting started on June 24 and ended on July 23.

The funds will be raised in up to 12 tranches, it noted. 

It mentioned that the period of private placement will be carried out within one year from the date of passing of the special resolution.

About 899.9 crore votes were cast in favour and 6.8 lakh against the special resolution, according to the filing. 

With that, 99.99 per cent of the cast votes were in favour. 

NTPC share price 

Earlier in the day, NTPC shares ended 1.2 per cent lower at Rs 338.9 apiece on BSE. Domestic equity benchmarks fell 0.6-0.7 per cent on Thursday amid selling pressure in financial, IT and energy shares. 

NTPC shares have risen 1.6 per cent so far this year, underperforming a 5.6 per cent gain in the Nifty50 but outperforming a 7.8 per cent loss in the Nifty CPSE.

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What are NCDs? How are they different from other bonds?

NCDs are a type of fixed-income instrument issued by corporates to raise capital.

Unlike convertible bonds, NCDs cannot be converted into equity shares of the issuing company.

NCDs are purely non-convertible and corporate-issued whereas normal bonds span a wider range of issuers.

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