In Flat 15 minutes, NTPC’s Bond Issue Oversubscribed Three Times

In Flat 15 minutes, NTPC’s Bond Issue Oversubscribed Three Times

India’s largest power producers, NTPC Ltd’s Rs. 500 crore bond issue got sold off in exactly 15 minutes and witnessed an oversubscription of nearly three times at Rs 1495 crore. The 10 year bond issue achieved a coupon rate of 7.47%.

NTPC, in a bid to meet its capital expenditure requirements had invited bids for its series 63 of Taxable Secured Non-Convertible Debentures on September 14 on the Electronic Bidding Platform of Bombay Stock Exchange.

“Bid book was closed in 15 minutes flat with issue oversubscribed by 3 times. Bids amounting to Rs 1495 crore were received from 15 participants against issue size of Rs. 500 crore with green shoe option having bullet maturity of 10 years,” NTPC said.

A coupon of 7.47% p.a. was achieved which was inside of Corporate 10-year “AAA” yield curve by 11 bps and an amount of Rs. 670 crore was allocated to successful bidder.

NTPC is rated “AAA” by CRISIL and ICRA and the bond issue was also rated “AAA”.

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