NTPC Limited Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, they will discuss about NTPC Limited Buyback offer, buyback price, buyback size, NTPC Buyback record date, company financial, buyback necessity and its impact on company.
To track the real time share price of this Buyback, click on this link – NTPC Share Price
NTPC Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | NOVEMBER 27, 2020 |
| Closing Date | DECEMBER 11, 2020 |
| Buyback Offer Amount | Rs.2275,74,81,790/- |
| Buyback No. of Shares | 19,78,91,146 |
| Face Value | Rs.10 |
| Date of Buyback Approval | November 2, 2020 |
| Date of Public Announcement | November 3, 2020 |
| Buy Back Price | Rs.115 |
| Buy Back Premium | 25.17% |
| Date of Board Meeting | November 2, 2020 |
NTPC Buyback Opening and Closing Date
The starting and closing date of this buyback is from NOVEMBER 27, 2020 to DECEMBER 11, 2020.
NTPC Buyback Cash Offer
Cash Offer to Buy-back up to 19,78,91,146 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 2% of the issued, subscribed and paid-up Equity Shares of the Company.
NTPC Buyback Record Date
The decided record date is NOVEMBER 13, 2020.
NTPC Buyback Price
At a price of Rs.115 per Equity Share.
NTPC Buyback Size
At a buyback price of Rs.115 payable in cash for an aggregate maximum amount of Rs.2275,74,81,790/-.
NTPC Limited Buyback Acceptance Query
You can check for Buyback Acceptance query here. Just click on the given link and it will redirect you to buyback acceptance query page.
NTPC Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 115 | 23000 | 3730 | 3.87% |
| 40% | 400 | 115 | 46000 | 7460 | 7.74% |
| 60% | 600 | 115 | 69000 | 11190 | 11.61% |
| 80% | 800 | 115 | 92000 | 14920 | 15.49% |
| 100% | 1000 | 115 | 115000 | 18650 | 19.36% |
Profit is calculated from Nov 27, 2020 share price that is Rs.96.35 per share of NTPC Limited.
According to the above table, if a shareowner applies for 1000 shares of NTPC limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.115 per share & receive Rs.3730 as profit amount & 3.87% profit percentage on selling these 200 shares back to the company.
Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.115 & receive a profit of Rs.11190 @ 11.61% profit percentage.
NTPC Limited Buyback Overview
NTPC is a diversified power major with presence in the entire value chain of the power generation business.
Apart from power generation, which is the mainstay of the company, NTPC has also ventured into consultancy, power trading, ash utilisation, equipment manufacturing, coal mining etc.
Ever since the Government gave approval to construct its first thermal power project at Singrauli in December 1976, the company has not looked back. The first unit at Singrauli was successfully commissioned on February 13, 1982.
Since 1982, through expansion of existing plants, construction of new plants and take-over of plants from State Utilities, NTPC group has grown to become the largest power generation utility in India.
Present installed capacity of NTPC Group is 62,910 MW (including 11,755 MW through JVs/Subsidiaries) comprising of 45 NTPC Stations (24 Coal based, 7 gas based, 1 Hydro based, 1 small hydro based, 11 Solar PV based and 1 Wind based) and 25 Joint Venture stations (9 coal based, 4 gas based, 8 hydro based, 1 small hydro based, 2 Wind based and 1 Solar PV based).
The capacity will have a diversified fuel mix and by 2032, non-fossil fuel based generation capacity shall make up nearly 30% of NTPC‟s portfolio.
Check other Buybacks with previous, upcoming and active status
NTPC Buyback – Company Finances
The brief audited consolidated financial information of the Company for the last three financial years are provided below:
[In Rs. Crores]
| Particulars | Sep 30, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 50,044.33 | 1,00,478.41 | 92,179.56 | 85,207.95 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 33,202.12 | 70,607.67 | 67,535.94 | 61,785.38 |
| Interest | 3,855.33 | 6,781.97 | 4,716.74 | 3,984.25 |
| Depreciation | 5,059.16 | 8,622.85 | 7,254.36 | 7,098.86 |
| Profit before tax | 6,564.72 | 14,465.92 | 12,672.52 | 12,339.46 |
| Provision for tax (including Deferred Tax) |
1,739.18 | 9,181.95 | (2,918.71) | 5,257.14 |
| Profit /(Loss) after tax | 5,974.96 | 10,112.81 | 11,749.89 | 10,343.17 |
| Equity Share Capital | 9,894.56 | 9,894.56 | *9,894.56 | 8,245.46 |
| Reserve and Surplus | 1,06,352.19 | 1,03,086.40 | 96,876.98 | 92,901.10 |
| Networth | 1,16,246.75 | 1,12,980.96 | 1,06,771.54 | 1,01,146.56 |
| Total Debt | 1,58,685.95 | 1,52,693.62 | 1,27,430.48 | 1,15,104.29 |
NTPC Limited Buyback Dates
| Date of Board Meeting approving the Buyback | November 2, 2020 |
| Date of publication of Public Announcement for Buyback | November 4, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | November 13, 2020 |
| Buyback Opening date | December 7, 2020 |
| Buyback Closing date | December 18, 2020 |
| Last Date of verification of Tender Forms by the Registrar | December 23, 2020 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | December 29, 2020 |
| *Last date of Settlement of Bids on the BSE Limited | December 29, 2020 |
| Last date of return of unaccepted Equity Shares by BSE Limited | December 30, 2020 |
| *Last date of Extinguishment of Equity Shares | January 6, 2021 |
NTPC Buyback – Details of Public Announcement
The Public Announcement was published on November 4, 2020 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of declaration of results of the Postal Ballot or special resolution:
| Publication | Language | Edition |
| Business Standard | English | All Editions |
| Business Standard | Hindi | All Editions |
Find Latest Buybacks Offer, Performance and Financial details
Necessity of NTPC Buyback
The Buyback would help in optimization of the capital structure and improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders‟ value.
Further, the Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations. And it would involve allocation of higher of number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the small shareholders. The Company believes that this reservation of 15% for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholder”.
Impact of NTPC Limited Buyback on the Company
We believe the Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company.
The debt-equity ratio post Buyback will be compliant with the permissible limit of 2:1 prescribed by Section 68 of the Companies Act and Regulation 4(ii) of the Buyback Regulations, even if the response to the Buyback is to the extent of 100% (full acceptance).
The Buyback of Equity Shares will not result in a change in control or otherwise affect the existing management structure of the Company
Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for the half year ended March 31, 2020 are as under:
Parameters (based on audited standalone financial statements for year ended March 31, 2020) |
Standalone | Consolidated | ||
| Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
|
| Net worth (Rs in crores) | 1,12,980.96 | 1,10,705.21 | 1,18,237.09 | 1,15,961.34 |
| Return on Net worth (%) | 8.95 | 9.13 | 9.81 | 10.00 |
| Earnings Per Share (Rs) | 10.22 | 10.43 | 11.72 | 11.96 |
| Book Value per Share (Rs) | 114.18 | 114.17 | 119.50 | 119.59 |
| Price / Earnings Ratio (P/E)** | 8.24 | 8.07 | 7.18 | 7.04 |
| Total Debt / Equity Ratio | 1.35 | 1.38 | 1.56 | 1.59 |
Basis of Calculating NTPC Buyback Price
The Buyback Offer Price of Rs 115 per Equity Share has been arrived at after considering various factors such as the average closing prices of the Equity Shares on the Stock Exchanges where the Equity Shares of the Company are listed.
The net-worth of the Company and the impact of the Buyback on the key financial ratios of the Company.
The Buyback Price represents
(i) a premium of 25.17% on BSE and 24.85% on NSE over the volume weighted average price of the Equity Shares on BSE and NSE, respectively for 26 weeks preceding the Board Meeting date;
(ii) a premium of 34.66% on BSE and 33.47% on NSE over the volume weighted average price of the Equity Shares on BSE and NSE, respectively for 2 weeks preceding the Board Meeting date;
(iii) a premium of 33.88% on BSE and 33.80% on NSE over the closing price of the Equity Shares on BSE & NSE, respectively as on the date of intimation to BSE & NSE for the Board Meeting to consider the proposal of the Buyback i.e. October 26, 2020.
The closing market price of the Equity Shares as on the date of intimation to the BSE and NSE for the Board Meeting for considering the Buyback i.e. October 26, 2020, was Rs 85.90 per Equity Share and Rs 85.95 per Equity Share respectively.
Know more about other Buybacks and their Registrar details
Source of Funds for the Buyback
The Buyback shall be made out of the free reserves of the Company as at March 31, 2020.
This Company shall transfer from its free reserves a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the Capital Redemption Reserve Account.
The funds for the Buyback will be met out of internally generated cash resources of the Company. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Accordingly, borrowed funds will not be used for the Buyback. However, if required, the Company may borrow funds in the ordinary course of its business.
NTPC Buyback – Manager to the Buyback
| IDBI Capital Markets & Securities Limited 6th floor, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai 400 005 Tel No.:+91 (22) 2217 1700; Fax No.: +91 (22) 2215 1787; Contact Person: Chandresh Sharma Email: ntpc.buyback@idbicapital.com; Website: www.idbicapital.com SEBI Registration Number: INM000010866; Validity Period: Permanent CIN: U65990MH1993GOI075578 |
NTPC Buyback – Registrar to the Buyback
|
Alankit Assignments Limited
205-208, Anarkali Complex, Jhandewalan Extension, New Delhi – 110055 Tel No: +91-11-4254 1234 / 2354 Fax: +91-11-2355 2001 Contact Person: Mr. Mahesh Pandey Email: alankit_ntpc@alankit.com; Website: www.alankit.com SEBI Registration Number : INR000002532 Validity Period: Permanent CIN: U74210DL1991PLC042569 |
NTPC Buyback Contact Details
| Company Contact Details |
| NTPC LIMITED (A Government of India Enterprise) Registered Office: NTPC Bhawan, SCOPE Complex, 7 Institutional Area, Lodhi Road, New Delhi – 110003 CIN: L40101DL1975GOI007966 Contact Person: Nandini Sarkar, Company Secretary & Compliance Officer Tel: +91 11 24360959 | Fax: +91 11 24360241 | Email: csntpc@ntpc.co.in | Website: www.ntpc.co.in |
NTPC Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – NTPC Ltd – Public Announcement
FAQs of NTPC Limited Buyback
What is the NTPC Limited Buyback Period?
NTPC Limited Buyback Period is briefly the time interval starting from the date of declaration of results of the postal ballot through remote e-voting i.e. NOVEMBER 27, 2020. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. DECEMBER 11, 2020.
What type of buyback is NTPC Limited Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the NTPC Limited Buyback Offer?
NTPC Limited Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 19,78,91,146 Fully paid up Equity shares, adhering to the buyback price.
When NTPC Limited Buyback offer will start?
As per the released schedule, the NTPC Limited Buyback offer will start on NOVEMBER 27, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of NTPC Limited Buyback at all times, we ensure you have access to the right data.
When is the closing date of NTPC Limited Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of NTPC Limited Buyback. The buyback would close on DECEMBER 11, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for NTPC Limited Buyback?
The amount at which the shares are taken back by the company is referred to as NTPC Limited Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.115, the price paid to each eligible shareholder.
What is the record date for NTPC Limited Buyback offer?
Record date of NTPC Limited Buyback is NOVEMBER 13, 2020. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of NTPC Limited Buyback?
NTPC Limited Buyback Size is Rs.2275,74,81,790 and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.
What is the necessity for NTPC Limited Buyback?
Objective of the NTPC Limited Buyback is to enhance the total return made by equity shareholders. Herein, the excess funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to NTPC Limited Buyback offer?
The designated registrar of NTPC Limited Buyback is Alankit Assignments Limited. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address and more.
Who is the Manager to the NTPC Limited Buyback offer?
Manager to the NTPC Limited Buyback is IDBI Capital Markets & Securities Limited. Manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check NTPC Limited buyback acceptance ratio?
Acceptance ratio is basically the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buyback and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.
Where to find NTPC Limited Buyback Dates / Events?
You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the NTPC Limited Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as NTPC Limited Buyback Dates.
What can be the Impact of NTPC Limited Buyback on the Company?
The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company. This Buyback is being undertaken, inter alia, for helping the Company to return surplus cash to the Eligible Shareholders broadly in proportion to their shareholding.
Where to find complete details on NTPC Limited Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download the Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.
Market Guide
Featured Topics