India’s leading power generator NTPC is gearing up for a significant financial move. The company’s board of directors is set to meet on June 29 to consider raising up to Rs 12,000 crore through non-convertible debentures (NCDs).
This potential fundraising comes on the heels of NTPC’s strong financial performance. In the fourth quarter of 2023-24 the company reported a impressive 33 percent jump in consolidated net profit reaching Rs 6,490.05 crore. This marks a substantial improvement from the Rs 4,871.5 crore earned in the same period last year.
NTPC’s revenue from operations also saw healthy growth rising 7.6 percent to Rs 47,622.06 crore in the March quarter. These robust financials underscore the company’s dominant position in India’s power sector where it contributes a quarter of the country’s electricity needs.
Despite the positive news NTPC’s stock closed slightly lower at Rs 361.5 on the NSE showing a marginal dip of 0.34 percent. This suggests investors are taking a cautious approach as they await further details on the proposed fundraising plan.
As India’s largest integrated power utility NTPC’s financial decisions carry significant weight in the energy sector. The outcome of the June 29 board meeting will be closely watched by industry analysts and investors alike.
