India’s largest power generation company, the state-owned NTPC Ltd’s bond issue saw an huge over-subscription of 2.5 times the actual size of the issue.
As NTPC invited bids for its 62nd series of Taxable Secured Non Convertible Debentures on August 19 with bullet repayment after 10 years, bids amounting to Rs 1,250 crore were received against issue size of Rs 500 crore.
After creating pricing tension, coupon of 7.58% p.a. was achieved which was inside of Corporate 10-year “AAA” yield curve by 12 bps and an amount of Rs. 800 crore was allocated to successful bidders. NTPC said it will use the proceeds of the for capital expenditure.
The bidding was conducted on the Electronic Bidding Platform of National Stock Exchange of India Ltd. under the guidelines issued by SEBI for adopting electronic book mechanism for issuance of debt securities on private placement basis.
NTPC is rated “AAA” by CRISIL, CARE and ICRA and the bond issue was also rated “AAA”.
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