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Business News/ Companies / News/  NTPC announces share buyback worth 2,275 cr at 115 per share

NTPC announces share buyback worth ₹2,275 cr at ₹115 per share

  • This amounts to a 28% premium as NTPC's scrip on BSE closed 2% higher on Monday at 89.55
  • NTPC's Q2 standalone net profit rises 7% to 3,504 cr

The buyback of shares is expected to be completed by January 2021

Electricity generator NTPC on Monday announced share buyback worth 2,275 crore of 19.78 crore shares at 115 per share. This amounts to a 28% premium.

On Monday, NTPC's scrip on BSE closed 2% higher at 89.55. The buyback of shares is expected to be completed by January 2021.

"The board of directors of the company in a meeting held on November 2, 2020 has inter-alia approved... buyback of the fully paid up equity shares of the company of face value of 10 each," NTPC said in a BSE filing.

The board approved the proposal to buy back 19,78,91,146 fully paid-up equity shares at a price of 115 per unit for an aggregate consideration not exceeding 2,275.75 crore, the filing stated.

The company has fixed 13 November, 2020 as the record date for the purpose of ascertaining the eligibility of shareholders for buyback of equity shares.

The board also approved extension of tenure Chairman & MD Gurdeep Singh till 31 July, 2025.

NTPC on Monday reported 7% increase in standalone net profit at 3,504 crore for the quarter ending 30 September, 2020 as against 3,262 crore in the year-ago period.

Revenue from operations rose 8% to 24,677 crore as compared to 22,673 crore in September 2019.

Last month, markets regulator Sebi granted exemption to NTPC from certain buyback norms for the proposed merger of its wholly-owned subsidiaries with the parent company.

In October, NTPC had filed an application with the Securities and Exchange Board of India (Sebi) to seek exemption from the strict enforcement of the buyback norms.

In November 2019, NTPC's board of directors approved a scheme of amalgamation entailing the merger of Nabinagar Power Generating Company Ltd and Kanti Bijlee Utpadan Nigam Ltd with NTPC.

For this, the company proposed to explore the possibility of buying back its equity shares from the existing shareholders on a proportionate basis through the tender offer route, subject to the requisite approval.

Gross power generation of NTPC Group in July-September 2020-21 was 67.67 billion units (BUs) as against 61.64 BUs in the same period last fiscal.

The average power tariff of the firm was 3.86 per unit in the first half of this fiscal.

The company's plant load factor (PLF) or capacity utilisation of coal-based projects was 64.27 per cent in the quarter under review as compared to 64.28 per cent a year ago.

Its domestic coal supply rose to 38.31 million tonne in the quarter from 36.13 million tonne in the year-ago period.

Coal imports by the company dipped to 0.15 million tonne from 0.62 million tonne a year ago.

The gas consumption increased to 5.66 MMSCMD (million metric standard cubic meter per day) from 3.05 MMSCMD.

Its gas-based projects' PLF also rose to 26.24 per cent in the second quarter from 13.13 per cent a year ago.

NTPC Group's total installed capacity increased to 62,910 MW as on September 30, 2020, from 57,106 MW by the year-ago same period.

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