Country's largest power producer, NTPC, has sought market regulator Sebi's approval to raise up to Rs 1,750 crore through tax free bonds in the current financial year.
"Public issue by NTPC of tax free secured redeemable non-convertible bonds of face value of Rs 1,000 each in the nature of debentures having tax benefits... for an amount aggregating up to Rs 1,000 crore with an option to retain over subscription up to Rs 750 crore for issuance of additional bonds aggregating to a total of up to Rs 1,750 crore in fiscal 2014," as per draft prospectus filed with Sebi.
The funds raised through the issue would be utilised towards funding of capital expenditure and refinancing for meeting the debt requirement in on-going projects.
The lead managers to the issue are ICICI Securities, A K Capital Services, Axis Capital, SBI Capital Markets and Kotak Mahindra Capital Company.
Currently, NTPC has a capacity of nearly 42,000 MW and targets to add about 14,000 MW to its total capacity by the end of 2016-17.