NTPC Ltd, the country’s largest power generator, is set to launch a follow-on public offer (FPO), with the government divesting 5 per cent equity in the company. After the government scaled up the pow
er capacity addition target in the current Plan period multi-fold, the company embarked upon a major diversification drive in the entire energy chain. As the Rs 61,700-crore PSU readies itself for the issue that is to be launched next week, Chairman and Managing Director R S Sharma tells Sudheer Pal Singh the time is perfect to garner market valuations. Edited excerpts:
You have just returned from an international roadshow for the FPO. How did the investors respond? We met 42 investors in Los Angeles, London, Boston, New York, etc. We covered 21 investors in New York alone. It would not be proper to name any investor, but the response was overwhelming. The qualified institutional buyers’ quota is 50 per cent. And, of the rest, 15 per cent is for high-networth individuals and 35 per cent for retail. We are hoping for significant subscription from global investors. NTPC is announcing this offer at a time when the climate change debate is at its peak globally. Being the largest power producer, over 80 per cent of which comes from coal, do you think the time is appropriate for a public issue in terms of valuations, especially as environment laws are expected to be stricter? This is absolutely the perfect time for us to enter the market. What the market is looking for, after all, is growth. We have almost 13 per cent growth year-on-year in capacity addition. The same is reflected in our profit and revenue. Further, when we launched our IPO in 2004, it was oversubscribed four times. And our dividend payout increases every year when we go in for such a growth. We certainly expect fair valuations by the market. We are entering into low-carbon growth strategy, which includes supercritical and ultra-supercritical technologies, along with renewable.
For further: www.business-standard.com/india/news/%5Ccoal-mine-development-islong-drawn-process%5C/383766/
er capacity addition target in the current Plan period multi-fold, the company embarked upon a major diversification drive in the entire energy chain. As the Rs 61,700-crore PSU readies itself for the issue that is to be launched next week, Chairman and Managing Director R S Sharma tells Sudheer Pal Singh the time is perfect to garner market valuations. Edited excerpts:You have just returned from an international roadshow for the FPO. How did the investors respond? We met 42 investors in Los Angeles, London, Boston, New York, etc. We covered 21 investors in New York alone. It would not be proper to name any investor, but the response was overwhelming. The qualified institutional buyers’ quota is 50 per cent. And, of the rest, 15 per cent is for high-networth individuals and 35 per cent for retail. We are hoping for significant subscription from global investors. NTPC is announcing this offer at a time when the climate change debate is at its peak globally. Being the largest power producer, over 80 per cent of which comes from coal, do you think the time is appropriate for a public issue in terms of valuations, especially as environment laws are expected to be stricter? This is absolutely the perfect time for us to enter the market. What the market is looking for, after all, is growth. We have almost 13 per cent growth year-on-year in capacity addition. The same is reflected in our profit and revenue. Further, when we launched our IPO in 2004, it was oversubscribed four times. And our dividend payout increases every year when we go in for such a growth. We certainly expect fair valuations by the market. We are entering into low-carbon growth strategy, which includes supercritical and ultra-supercritical technologies, along with renewable.
For further: www.business-standard.com/india/news/%5Ccoal-mine-development-islong-drawn-process%5C/383766/
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