C M Y K
C M Y K
RED HERRING PROSPECTUSPlease read Section 60B of the Companies Act, 1956
Book Built OfferDated January 12, 2010
GENERAL RISKS
Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in this Offer unless they can afford to take the risk oflosing their investment. Investors are advised to read the Risk Factors carefully before taking an investment decision in this Offer. For taking an investment decision, investorsmust rely on their own examination of the Company and the Offer including the risks involved. The Equity Shares offered in this Offer have not been recommended or approvedby the Securities and Exchange Board of India (SEBI), nor does SEBI guarantee the accuracy or adequacy of this Red Herring Prospectus. This being a fast track issue underRegulation 10 of the SEBI Regulations, our Company has filed this Red Herring Prospectus with the Registrar of Companies, National Capital Territory of Delhi and Haryana(RoC) with a copy to SEBI. Specific attention of the investors is invited to Risk Factors on page xvi.
COMPANY AND SELLING SHAREHOLDERS ABSOLUTE RESPONSIBILITY
The Company and the Selling Shareholder, having made all reasonable inquiries, accept responsibility for and confirm that this Red Herring Prospectus contains allinformation with regard to the Company and this Offer which is material in the context of this Offer, that the information contained in this Red Herring Prospectus is true andcorrect in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no otherfacts, the omission of which makes this Red Herring Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in anymaterial respect.
LISTING
The Equity Shares of our Company are listed on the BSE and the NSE. NSE is the Designated Stock Exchange for the Offer.
FURTHER PUBLIC OFFER OF 412,273,220 EQUITY SHARES OF RS. 10 EACH (THE EQUITY SHARES) OF NTPC LIMITED (NTPC OR OUR COMPANY)THROUGH AN OFFER FOR SALE BY THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA (THESELLING SHAREHOLDER) FOR CASH AT PRICES DETERMINED THROUGH THE ALTERNATE BOOK BUILDING METHOD UNDER PART D OFSCHEDULE XI OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS,2009, AS AMENDED (THE SEBI REGULATIONS) AGGREGATING RS. [] MILLION (THE OFFER). THE OFFER COMPRISES A NET OFFER TO THEPUBLIC OF 408,000,000 EQUITY SHARES (THE NET OFFER) AND A RESERVATION OF 4,273,220 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLEEMPLOYEES (AS DEFINED HEREINBELOW) (THE EMPLOYEE RESERVATION PORTION). THE OFFER SHALL CONSTITUTE 5% OF THE POST OFFERPAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.
THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 EACH.
THE FLOOR PRICE AND THE MINIMUM BID LOT WILL BE DECIDED BY OUR COMPANY AND THE SELLING SHAREHOLDER IN CONSULTATION WITHTHE BOOK RUNNING LEAD MANAGERS (BRLMs) AND ADVERTISED IN TWO NATIONAL NEWSPAPERS (ONE IN ENGLISH AND ONE IN HINDI) ATLEAST ONE (1) WORKING DAY PRIOR TO THE BID/OFFER OPENING DATE.
THE PROMOTER OF OUR COMPANY IS THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA
Our Company was originally incorporated in New Delhi on November 7, 1975 as a private limited company under the name National Thermal PowerCorporation Private Limited. For details of the change in the name of our Company and registered office, see History and Certain Corporate Matters on page 101.
Registered and Corporate Office: NTPC Bhawan, SCOPE Complex, 7, Institutional Area, Lodhi Road, New Delhi 110 003, India.Tel: + (91 11) 2436 0100 Fax: + (91 11) 2436 1018
Company Secretary and Compliance Officer: Mr. A.K. Rastogi Tel: + (91 11) 2436 0071 Fax: + (91 11) 2436 0241E-mail: [email protected], Website: www.ntpc.co.in
NTPC LIMITED
BID/OFFER PROGRAM
BID/OFFER OPENS ON : FEBRUARY 3, 2010 BID/OFFER CLOSES ON : FEBRUARY 5, 2010
BOOK RUNNING LEAD MANAGERS
ICICI SECURITIES LIMITEDICICI Centre,H.T. Parekh MargChurchgateMumbai 400 020Maharashtra, IndiaTel: + (91 22) 2288 2460Fax: + (91 22) 2282 6580E-mail: [email protected] Grievance E-mail:[email protected]: www.icicisecurities.comContact Person: Mr. Anupam KumarSEBI Registration No.:INM000011179
REGISTRAR TO THE OFFER
CITIGROUP GLOBAL MARKETSINDIA PRIVATE LIMITED12th Floor, BakhtawarNariman Point, Mumbai 400 021Maharashtra, IndiaTel: + (91 22) 6631 9999Fax: + (91 22) 6646 6192E-mail: [email protected] Grievance E-mail:[email protected]: www.citibank.co.inContact Person: Mr. Ranjeet BhideSEBI Registration No.:INM000010718
J.P. MORGAN INDIAPRIVATE LIMITEDJ.P. Morgan TowerOff. C.S.T. Road, KalinaSantacruz (East), Mumbai 400 098Maharashtra, IndiaTel: + (91 22) 6157 3000Fax: + (91 22) 6157 3911E-mail: [email protected] Grievance E-mail:[email protected]: www.jpmipl.comContact Person: Mr. Sagarnil PalSEBI Registration No.: INM000002970
KOTAK MAHINDRACAPITAL COMPANY LIMITED1st Floor, Bakhtawar229, Nariman Point, Mumbai 400 021Mahrashtra, IndiaTel: + (91 22) 6634 1100Fax: + (91 22) 2284 0492E-mail: [email protected] Grievance E-mail:[email protected]: www.kmcc.co.inContact Person: Mr. Chandrakant BholeSEBI Registration No.:INM000008704
KARVY COMPUTERSHAREPRIVATE LIMITED17-24 Vittalrao NagarMadhapurHyderabad 500 081Andhra Pradesh, IndiaTel: + (91 40) 2342 0815Fax: + (91 40) 2343 1551E-mail: [email protected]: www.karvy.comContact Person: Mr. M. Murali KrishnaSEBI Registration No.:INR000000221
Our Company and the Selling Shareholder, in consultation with the BRLMs, reserve the right to revise the Bid/Offer Period, subject to the Bid/Offer Period not exceedinga total of 10 working days. Any revision in the Bid/Offer Period, if applicable, will be widely disseminated by notification to the Bombay Stock Exchange Limited (BSE)and the National Stock Exchange of India Limited (NSE), by issuing a press release, and also by indicating the change on the website of the BRLMs and at the terminalsof the Syndicate.The Offer is being made through the Book Building Process wherein up to 50% of the Net Offer will be available for allocation on a price priority basis to QualifiedInstitutional Buyers (QIBs) (QIB Portion). Further 5% of the QIB Portion shall be available for allocation on a price priority basis to Mutual Funds only. The remaindershall be available for allocation on a price priority basis to QIBs and Mutual Funds, subject to valid Bids being received from them above the Floor Price. Further, not lessthan 15% of the Net Offer will be available for allocation on a proportionate basis to Non-Institutional Bidders subject to valid Bids received at the Floor Price. Further, notless than 35% of the Net Offer will be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at the Floor Price.Furthermore, 4,273,220 Equity Shares shall be made available for allocation on a proportionate basis to the Eligible Employees, subject to valid Bids being received at theFloor Price. Any Bidder (other than QIBs) may participate in this Offer through the ASBA process by providing the details of their respective bank accounts in which thecorresponding Bid amounts will be blocked by Self Certified Syndicate Banks (SCSBs). For further details, see Offer Procedure on page 306.
TABLE OF CONTENTS
SECTION I GENERAL ..................................................................................................................................... i
DEFINITIONS AND ABBREVIATIONS ...................................................................................................... i CERTAIN CONVENTIONS, USE OF FINANCIAL INDUSTRY AND MARKET DATA AND
CURRENCY OF PRESENTATION ............................................................................................................. xi NOTICE TO INVESTORS .......................................................................................................................... xiii FORWARD-LOOKING STATEMENTS ................................................................................................... xv
SECTION II - RISK FACTORS ...................................................................................................................... xvi SECTION III - INTRODUCTION ..................................................................................................................... 1
SUMMARY OF INDUSTRY .......................................................................................................................... 1 SUMMARY OF BUSINESS ........................................................................................................................... 3 SUMMARY FINANCIAL INFORMATION ................................................................................................ 6 THE OFFER .................................................................................................................................................. 11 GENERAL INFORMATION ....................................................................................................................... 12 CAPITAL STRUCTURE .............................................................................................................................. 27 OBJECTS OF THE OFFER ......................................................................................................................... 33 BASIS FOR FLOOR PRICE ....................................................................
