NTPC to Raise ₹4,000 Crore via NCDs for Capex and Debt Refinancing

NTPC will issue non-convertible debentures (NCDs) worth ₹4,000 crore on June 17, 2025, through private placement. These unsecured debentures carry a coupon rate of 6.89% per annum and will mature on June 18, 2035. The tenor is 10 years and one day. The debentures are expected to be listed on the National Stock Exchange, as per the filing.

Utilisation of Funds

The company stated in its filing that the proceeds from the NCDs will be used for capital expenditure, refinancing of existing loans, and other general corporate purposes.

3rd Phase Under ₹12,000 Crore Plan

This is the 3rd issue under NTPC’s broader plan to raise ₹12,000 crore via secured or unsecured, redeemable, taxable or tax-free, cumulative or non-cumulative, non-convertible debentures on a private placement basis. The board approved this plan on June 29, 2024, and shareholder approval followed on August 29, 2024. The total fundraising is to be completed in up to 12 phases by the FY26 Annual General Meeting.

Capex Plans for FY26

At the group level, NTPC has set a capital expenditure target of ₹55,920 crore for FY26. This is a 25.3% increase from the ₹44,636 crore spent in FY25. The company also aims to add 11,806 MW of capacity in the current financial year.

Read more: NTPC Secures $750 Million ECB Loan to Boost Capacity Expansion and Green Projects!

NTPC Q4FY25 Results

In the fourth quarter of FY25, NTPC posted a consolidated net profit of ₹7,897.14 crore, up from ₹6,490.05 crore in the same quarter of the previous year. Revenue from its generation business stood at ₹49,352.99 crore, compared to ₹47,088.70 crore in Q4 FY24.

NTPC Share Price Performance

NTPC share price closed at ₹331.95 on June 13, 2025, down 0.57% for the day. The stock has fallen 0.42% year-to-date and 7.17% in Q1 FY26. Its market capitalisation stood at ₹3.22 lakh crore.

Conclusion

The ₹4,000 crore debt raise adds to NTPC’s fund mobilisation as it goes ahead with its FY26 targets. With multiple phases still pending under the approved limit, further issuances can be expected in the coming months.

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