| On the fast track
New Delhi, April 4: The National Thermal Power Corporation has decided to float an initial public offering (IPO) of Rs 20 per share during the financial year 2003-04 which is expected to mop up Rs 1,500 crore.
The proposal to float the IPO and the time-table for it has been submitted to Union power minister Anant Geete who will seek the Cabinet’s approval later this month. NTPC will also seek the approval of the Securities and Exchange Board of India (Sebi).
The premium for the Rs 400 crore flotation, which is slated for the year-end, will be decided later. NTPC has a paid-up capital of Rs 800 crore.
The company will announce the details of the issue by May-end and will appoint the lead manager for the IPO by June.
The resources generated from the IPO will be used to fund its various operations like expansion projects and capacity addition during the Tenth Plan period. At present, several projects totalling 4,800-megawatt (MW) capacity is under various stages of construction.
NTPC plans to add 40,000 MW of power by 2012. The Central Electricity Authority (CEA) has given the techno-economic clearance to eight new projects with a total capacity of 8,200 MW to be implemented during the Tenth and Eleventh five-year plans.
To boost its capacity addition programme in the hydel sector, the corporation has formed a subsidiary company, NTPC Hydro Ltd, for the development of small and medium-scale hydro power projects.
During the financial year 2002-03, NTPC achieved a capacity addition of 1,000 MW against the target of 500 MW.
NTPC registered a marginal increase in its net profit at Rs 3,574.15 crore during 2002-03 as against Rs 3,539.62 crore in 2001-02.
The provisional turnover of the company during 2002-03 was Rs 19,946.61 crore as against Rs 18,583.74 crore in 2001-02.
As a result of the securitisation of bonds by the state electricity boards, the receivables of the company will be less than Rs 3,000 crore as against Rs 26,078.96 crore.
Announcing the financial results of NTPC, chairman C. P. Jain said, “The tripartite agreement signed by 24 state governments will help NTPC receive Rs 19,383 crore as bonds from the states.”
Meanwhile, NTPC has received queries from 10 companies — Petronet, Oman LNG, Reliance Industries, British Gas, British Petroleum, Shell Hazira, Shell Eastern Energy Supply, Yemen LNG, RasGas and Petronas — in response to its request for a regasification project in Gujarat.
It has also received bids for exploration of natural gas from Unocal, Reliance Industries Ltd, Shell Hazira and British Petroleum.