NTPC announces ₹ 2,275 crore share buyback at ₹ 115 per share

NTPC's 28% premium as a dividend on BSE was 2% higher at ₹ 89.55 on Monday.

NTPC's Q2 standalone net profit up 7% at ₹ 3,504 crore

New Delhi (Natural Energy News): Power generator NTPC on Monday announced a buyback of 2,275 crore shares of 19.78 crore shares at ₹ 115 per share. This is equivalent to a 28% premium.

NTPC shares closed up 2% at 89.55 on the BSE on Monday. The buyback of the shares is expected to be completed by January 2021.

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NTPC said on the BSE, "In a meeting held on November 2, 2020, the Board of Directors of the company has approved the inter-alia ... 'Fully paid equity shares of the company of face value of face 10' Buyback. " Filing.

The board said that the board approved the proposal to buy back 19,78,91,146 fully paid equity shares at a price of ₹ 115 per unit, not to exceed ₹ 2,275.75 crores in total.

The company has set November 13, 2020, because the record date to determine shareholders' eligibility for buyback of equity shares.

The Board also approved the extension till 31 July 2025 of the tenure chairman and MD Gurdeep Singh.

NTPC on Monday reported a 7% increase in standalone net profit to ₹ 3,504 crores for the quarter ended September 30, 2020, as against ₹ 3,262 crores in the year-ago period.

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Revenue from operations increased 8% to ₹ 24,677 crores as compared to ₹ 22,673 crores in September 2019.

Last month, market regulator SEBI exempted NTPC from certain buyback norms for the proposed merger of wholly owned subsidiaries with the parent company.

In October, NTPC filed an application with the Securities and Exchange Board of India (SEBI) seeking exemption from strict enforcement of buyback norms.

In November 2019, NTPC's Board of Directors approved an idea to merge NabinC Power Generating Company Limited and Kanti Bijlee Utpadan Nigam Ltd with NTPC.

To this end, the company proposed to explore the possibility of buying back its equity shares on an existing basis to its shareholders through a tender offer route subject to the required offer.

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The gross power generation of NTPC group was 67.67 billion units (BU) in July-September 2020-21 as against 61.64 BU in the same period of the previous fiscal.

The firm's average power rate in the first half of this financial year was power 3.86 per unit.

The capacity utilization of the company's plant ratio (PLF) or coal-based projects was 64.27 percent within the quarter under review as compared to 64.28 percent a year ago.

Its domestic coal supply increased to 38.31 million tonnes from 36.13 million tonnes in the year-ago period.

Coal imports by the company were 0.15 million tonnes from 0.62 million tonnes a year earlier.

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Gas consumption increased from 3.05 MMSCMD to 5.66 MMSCMD (million metric standard cubic meters per day).

Its gas-based project 'PLF' also increased to 26.24 percent in the second quarter from 13.13 percent a year ago.

The total installed capacity of NTPC group increased to 62,910 MW as on September 30, 2020, from 57,106 MW in the same period last year.

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