NTPC Rs 700 crore bond issue precloses

State-run NTPC has pre-closed its public issue of Rs 700 crore tax-free bonds as it was oversubscribed by 11.04 times on the first day on Wednesday.

NTPC has informed the Bombay Stock Exchange that in view of the oversubscription, the company is pre-closing the public issue of tax-free bonds on September 24.

By the end of the first day, the issue was oversubscribed by 11.04 times of the base issue size of Rs 400 crore and 6.31 times of the overall issue size of Rs 700 crore, the company said. The retail portion was oversubscribed by 6.60 times reflecting a huge confidence of retail investors in the company, NTPC said.

A total demand of more than Rs 4,400 crore was generated against the issue size of Rs 700 crore. NTPC's issue was the first tax-free bond issuance in this fiscal. In July, the government had approved the plan to raise Rs 1,000 crore through tax-free bonds, including Rs 700 crore through public issue.

(In association with Mail Today Bureau)