Trending PSU stocks: NHPC board to raise Rs 5,000 crore through corporate bonds

State-owned Hydro Power major NHPC Limited is planning to raise funds worth Rs 5,000 crore through private placement of corporate bonds or debentures, according the company’s statement.

The hydro power company’s fund raise proposal will be considered by the board of directors and will further be subjected to the shareholder’s approval through special resolution at the next annual general meeting.     

The company will also be considering the proposal to raise Rs 494 crore by issuing ‘W’ series corporate bonds through private placement basis.    

The proposed issue is a fraction of Rs 4500 crore, which already received the approval by the shareholders in their 40th annual general meeting held on September 22, 2016.

Furthermore, NHPC stated in a filling that the company has signed purchase agreements with BSES Rajdhani Power Limited (BRPL) for the purchase of seven power stations including Bairasiul, Salal and Tanakpur for a period of 35 years from the commencement of their commercial operations. The seven stations are expected to have an aggregate capacity of 2,400MW.

NHPC operated 20 hydro power projects with an installed capacity of 6,507MW, comprising about 15 per cent of India’s total installed hydro power capacity of 44,478MW. The company has three more projects under construction, which are expected to add 3,130MW to the total power generation capacity.  

The company had posted revenues worth Rs 7,191 crore from the operation in FY17, down by 1.5 per cent from FY16. The company expects to hit a generation target of 24000 MU and revenues worth Rs 7,350 crore in the current fiscal.