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Energy industries

NTPC Secures Exemption for 5% Public Issue of Shares

Strategic Insights

— 1 min read

State-owned National Thermal Power Corporation has secured an exemption from market regulator SEBI for a 5% public issue of shares, paving the way for an IPO later this year. The exemption, granted due to market concerns about the huge size of the issue, will allow NTPC to raise funds for its expansion projects, including tripling its capacity generation to 56,000 MW by 2017.

Key Takeaways:

  • NTPC secured an exemption from SEBI for a 5% public issue of shares, a 5% reduction from the mandatory listing norm of 10%.
  • The exemption was granted due to market concerns about the huge size of the issue, with a total face value of Rs 4 billion.
  • The proceeds from the issue will be used to fund NTPC's expansion projects, including tripling its capacity generation to 56,000 MW by 2017.
  • NTPC has mandated three leading merchant bankers and a leading law firm to act as joint book runners and legal advisors for the issue.
  • Chairman and Managing Director C P Jain had said the corporation planned to hit the market with a public float towards the first week of August.
  • Recent development indicating that the regulator granted an unconditional exemption to NTPC as recently as this week.

Statistics:

  • 5%: the reduction in the public issue of shares exempted from the mandatory listing norm of 10%.
  • Rs 4 billion: the total face value of the public issue of shares.
  • 56,000 MW: the target capacity generation for NTPC by 2017, a tripling of its current capacity.
  • 10%: the mandatory listing norm for public issues of shares.
  • August: the planned month for the public float of the issue.

Sources:

  • "State-owned National Thermal Power Corporation is understood to have secured an exemption from market regulator SEBI", Asia Pulse, June 4.
  • "The market watchdog has granted a waiver to NTPC for floating a 5 per cent public issue of shares", official sources said.
  • "Earlier, Chairman and Managing Director C P Jain had said the corporation planned to hit the market with a public float towards the first week of August", (PTI) 04-06 2013.

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