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NTPC issues bonus debentures worth over Rs 10,000 crore

30 Mar 2015 Evaluate

NTPC has issued, by way of bonus, one fully paid-up, secured debenture of Rs 12.50 each, for every one fully paid-up equity share of Rs 10 held by its shareholders. This is the largest ever Bonus Debenture Issue of Rs 10307 crore in India and the issue created the largest Debenture holders base of over 7 lakh investors thus adding depth to debt market.

In order to reward its shareholders in the 40th year of incorporation of the Company, it has been decided to issue Bonus debentures. The transaction was a unique capital restructuring exercise resulting in conversion of Rs. 10,306.83 crore from the free reserves of NTPC into debentures. The debentures are secured in nature and are rated Triple AAA by all the three rating agencies. The door-to-door maturity of debenture is 10 years and the instrument is redeemable in 8th, 9th and 10th year. These Bonus Debentures have been allotted on March 25, 2015 and in terms of the Scheme.

By virtue of 74.96% shareholding in NTPC, Government of India receives 618.06 crore bonus debentures amounting to Rs 7725.76 crore. In addition, Government also received Rs 2061 crore (approx.) as dividend distribution tax on these debentures. NTPC became the first PSU and First Maharatna to undertake such innovative capital restructuring exercise.

NTPC Share Price

402.70 0.50 (0.12%)
11-May-2026 11:01 View Price Chart
Peers
Company Name CMP
NTPC 402.70
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