NTPC announces share buyback worth Rs 2,275 crore at Rs 115 per share

The electric power distribution company NTPC on Monday announced a share buyback of 19.78 crore shares worth Rs 2,275 crore. The buyback has been fixed at a price of Rs 115 per equity share. This amounts to a 28% premium. The buyback of shares is expected to be completed by January 2021.

The Buyback Offer Size does not include any expenses incurred or to be incurred for the Buyback like filing fees payable to the Securities and Exchange Board of India, advisors fees, public announcement publication expenses, printing, dispatch expenses, applicable taxes inter alia including buyback taxes, securities transaction tax, goods and services tax, stamp duty and other incidental and related expenses.

In a regulatory filing, NTPC said, "The board of directors of the company in a meeting held on November 2, 2020, has inter-alia approved buyback of the fully paid-up equity shares of the company of face value of Rs 10 each. The board approved the proposal to buy back 19,78,91,146 fully paid-up equity shares at a price of Rs 115 per unit for an aggregate consideration not exceeding Rs 2,275.75 crore.

The company has fixed November 13, 2020, as the record date to ascertain the eligibility of shareholders for buyback of equity shares.

Besides, the board also approved the extension of tenure Chairman & MD Gurdeep Singh till July 31, 2025.

Also, NTPC on Monday reported a 7.2 per cent year-on-year increase in standalone profit at Rs 3,504 crore for the quarter ended September 30, 2020, against Rs 3,262 crore in the year-ago period. Revenue from operations rose 8 per cent to Rs 24,677 crore compared to Rs 22,673 posted in September 2019.

Its EBITDA increased by 13.2 per cent to Rs 7,183 crore against Rs 6,346 crore posted last year, while the margins grew to 29.2 per cent in the reported quarter against 27.9 per cent posted in Q2FY20

Last month, markets regulator Sebi granted an exemption to NTPC from certain buyback norms for the proposed merger of its wholly-owned subsidiaries with the parent company.