NTPC Set to Issue ₹4,000 Crore Non-Convertible Debentures

NTPC Limited, a government-owned enterprise, has decided to issue unsecured non-convertible debentures amounting to ₹4,000 crore. This move aligns with its financial planning strategy to support business expansion and strengthen its financial position. 

Issuance of Debentures

NTPC Limited has announced the issuance of unsecured non-convertible debentures worth ₹4,000 crore. These debentures are expected to be privately placed on March 20, 2025 with an interest rate of 7.26% per year and expected to mature after 15 years on March 20, 2040. 

Purpose of Fundraising

The funds raised through these debentures are expected to be used for various purposes including capital expenditure, refinancing existing loans and general corporate activities.  

About NTPC

NTPC Limited, India’s largest power utility, is a government-owned company under the Ministry of Power that is focused on electricity generation and distribution. Established in 1975, it supplies bulk power to state utilities and has a current installed capacity of over 76 GW, aiming to reach 130 GW by 2032. While traditionally known for thermal power, NTPC is expanding into renewable energy, hydro power, coal mining and power trading, with a goal of 60 GW renewable capacity by 2032. 

NTPC’s Financial Performance  

NTPC reported a net profit of ₹4,711.40 crore for the quarter ending December 2024, marking a 3.1% increase compared to ₹4,571.90 crore in the same quarter the previous year. The company’s revenue also grew by 4.8% year-on-year, reaching ₹41,352.30 crore compared to ₹39,455 crore in the corresponding period.  

Share performance 

As of March 19, 2025, at 1:55 PM, with a market capitalisation of ₹3.30 trillion, the shares of NTPC Ltd are trading at ₹340.75 per share, reflecting a surge of 1.01% from the previous day’s closing price. Over the past month, the stock has registered a profit of 8.24%. The stock’s 52-week high stands at ₹448.45 per share, while its low is ₹292.80 per share.

Conclusion

This debenture issuance highlights NTPC’s commitment to financial stability and business expansion. By raising funds through this strategic move, the company aims to optimise resources and ensure steady growth. 

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