NTPC Tax Free Bonds - Dec 2013 - (Apply)

NTPC (formerly National Thermal Power Corporation), a Maharatna company of the central government, will offer tax-free secured redeemable non-convertible bonds that opens on 3rd December 2013 and will close on or before 16th December 2013. NTPC is the largest power producer in India in terms of both installed capacity and generation, with aggregate installed capacity of 41,184 MW (including 35,820 MW through directly owned units and 5,364 MW through subsidiaries and joint ventures), representing market share of 18.44 percent of India's total installed capacity as on March 31, 2013.

NTPC will offer better rates for 10 and 15 years than NHPC bonds that received overwhelming response in the recent past. The rate for 20 years is almost unchanged. NTPC coupon rates for retail individual investors will be 8.66%, 8.73% and 8.91% for 10, 15 and 20 year bonds. It has been assigned AAA rating by ICRA and CRISIL. A K Capital Services Limited, Axis Capital Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited are the lead managers to the issue. Karvy Computershare Private Limited is a registrar. The bonds will be listed on BSE and NSE.

NTPC issue size is Rs 1,000 crore with an option to retain oversubscription up to Rs 750 crore for issuance of additional bonds, aggregating to up to Rs 1,750 crore. Each bond is of a face value of Rs. 1000 each and minimum application is to be made for 5 bonds and in multiples of 1 bond thereafter. The Bonds will be issued in both physical mode (other than to investors who are eligible QFIs as detailed in the Prospectus. However, trading will take place in demat form only.