NewsCorporate ActionsNTPC Shareholders Overwhelmingly Approve Rs. 18,000 Crore Fund Raising via Non-Convertible DebenturesNTPC Shareholders Overwhelmingly Approve Rs. 18,000 Crore Fund Raising via Non-Convertible Debentures
NTPC Limited received strong shareholder approval to raise up to Rs. 18,000 crore through Non-Convertible Debentures (NCDs) on a private placement basis. The postal ballot saw a 92.81% participation rate, with 99.9925% of votes in favor of the special resolution. All shareholder categories, including promoter group, public institutional, and public non-institutional, showed strong support for the fund-raising plan.
*this image is generated using AI for illustrative purposes only.
NTPC Limited , India's largest power generation company, has received a resounding vote of confidence from its shareholders for its plans to raise funds through Non-Convertible Debentures (NCDs). In a recent postal ballot, an overwhelming majority of shareholders approved the special resolution to raise up to Rs. 18,000 crore through the issuance of NCDs on a private placement basis.
Voting Results
The e-voting process, conducted from June 24 to July 23, saw an impressive participation rate of 92.81% of the total outstanding shares. The results were nothing short of a landslide in favor of the resolution:
| Shareholder Category | Votes in Favor (%) | Votes Against (%) |
|---|---|---|
| Overall | 99.9925 | 0.0075 |
| Promoter Group | 100.0000 | 0.0000 |
| Public Institutional | 99.9800 | 0.0200 |
| Public Non-Institutional | 96.9600 | 3.0400 |
Strong Shareholder Support
The strong support across all shareholder categories underscores the confidence in NTPC's financial strategy and growth plans. Notably, out of the total 9.69 billion outstanding shares, approximately 8.99 billion shares participated in the voting process.
Scrutiny and Compliance
CS Amit Kaushal of M/s A. Kaushal & Associates, Company Secretaries, served as the scrutinizer for the e-voting process, ensuring its fairness and transparency. The company adhered to all relevant regulations, including those set by SEBI and the Ministry of Corporate Affairs.
Implications for NTPC
This approval paves the way for NTPC to strengthen its financial position and potentially fund its ongoing and future projects. The successful raising of funds through NCDs could provide the company with the necessary capital to expand its operations, invest in new technologies, or refinance existing debt.
Market Response
While the immediate market response to this news is not available, the overwhelming shareholder approval is likely to be viewed positively by investors and analysts alike. It demonstrates strong shareholder faith in NTPC's management and future prospects.
NTPC Limited's move to raise substantial funds through NCDs, backed by such strong shareholder support, positions the company well for its future endeavors in the power sector. As India's energy needs continue to grow, NTPC's financial strategy will play a crucial role in meeting these demands while maintaining its position as a leader in the power generation industry.
Historical Stock Returns for NTPC
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.07% | +0.60% | +0.13% | +5.18% | -15.82% | +238.28% |
19
