NTPC Gets Shareholder Nod to Raise Funds on Private Placement Basis

25 Jul 2025 , 11:26 AM

NTPC has secured approval from its shareholders to raise upto ₹18,000 crore by issuing non-convertible debentures (NCDs) through private placement. The capital will be raised in up to 12 separate tranches within a year from the date the special resolution was passed. A postal ballot notice was issued on June 23, 2025, to seek shareholder consent for the fundraise via remote e-voting.

The proposed NCDs may be secured or unsecured, redeemable, taxable or tax-free, and cumulative or non-cumulative, offering the company flexibility in its debt instruments.

NTPC confirmed in a regulatory filing on Thursday that the resolution received the necessary majority support from shareholders. The company’s board had earlier met on June 21, 2025, and approved the draft notice for the postal ballot to formally initiate the approval process.

June 20, 2025, was fixed as the cut-off date to determine eligible members who would receive the postal ballot notice and have voting rights. Remote e-voting was open from June 24 to July 23, providing members nearly a month to participate in the decision-making.

The company mentioned that, since it is currently in an expansion phase, a significant portion of its capital expenditure needs to be financed through debt. This fundraising initiative is part of NTPC’s broader plan to support its growing infrastructure and capacity requirements through strategic debt instruments.

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