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NTPC may float another FPO next fiscal

NTPC may float another FPO next fiscal
PTI
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First Published: Fri, Dec 17 2010. 01 45 PM IST
Updated: Fri, Dec 17 2010. 01 45 PM IST
New Delhi: State-run power producer NTPC may approach the government next fiscal for permission to raise funds through a follow-on public offer (FPO) to part-finance power equipment purchases worth an estimated Rs1,50,000 crore.
“NTPC may approach the government next fiscal for a follow-on offer,” a power ministry official said.
NTPC currently generates over 32,000 MW of electricity per annum, but plans to ramp up capacity to 75,000 MW by 2017. For this purpose, it is expected to float a Rs1,50,000 crore international competitive bidding tender to source the power equipment.
However, the stake to be divested by the government and the fresh equity to be offered under the FPO could not be ascertained, as the proposal is still at a nascent stage.
NTPC has already raised over Rs8,000 crore through its FPO in February this year.
The company may also borrow from overseas to fund its expansion plans. “It may raise money from the overseas market,” the official added.
NTPC recently tied up with Japan-based Bank of Tokyo-Mitsubishi UFJ for a $300 million loan to part-finance its ongoing and new projects.
Meanwhile, the power ministry is gearing up for the 20% follow-on offer of state-run Power Finance Corporation (PFC), which is likely to be launched early next fiscal. PFC would raise fresh equity to the tune of 15% and the government would divest a 5% stake in the company through the FPO.
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First Published: Fri, Dec 17 2010. 01 45 PM IST