State-owned NTPC today said that right now it has no plans to buy back shares. "As of now we don't have any formal communication nor there is any further buyback from our side," company's Chairman and Managing Director Gurdeep Singh told reporters here.
State-owned NTPC today said that right now it has no plans to buy back shares. “As of now we don’t have any formal communication nor there is any further buyback from our side,” company’s Chairman and Managing Director Gurdeep Singh told reporters here.
He was addressing an annual press conference here.
Elaborating on the same, company’s Director Finance Kulamani Biswal said :”You see buyback position comes only when you have sufficient cash reserves (idle) or you do not have capex plan.
“We have about 24,000 MW of projects under construction which require Rs 1,00,000 crore of capital expenditure. Therefore, our capital expenditure plans are also quite high.”
The CMD further said as on March 31, 2016 there has been 100 per cent realisation. At the same time, the company is going ahead with expansion plans because under-construction projects are worth 24,000 MW.
“There is a huge capex….We have been able to realise 100 per cent. There are no problems as far as operations are concerned. But for our expansion programme we will have to go on borrowing,” Singh said.
The company further said it does not have enough cash reserves to go in for buyback of shares.
As of March 31, 2016, the company’s cash reserves is approximately Rs 4,000 crore.
The company incurred capex of Rs 25,737.59 crore during last fiscal against the MoU target of Rs 23,000 crore, achieving 112 per cent of the target utilisation.
The current year capex target of NTPC is Rs 30,000 crore.
In addition, the group companies are likely to incur capex of Rs 8,965 crore.
The company further said it will add 4,500 MW of capacity in current fiscal, more than double of 2,200 MW it added in the last financial year.
As many as eight private sector companies, including Bharti Infratel, Bharti Airtel, Wipro, Dr Reddy’s and OnMobile Global, in 2016 have announced buyback plans totalling about Rs 7,700 crore.
While renaming the Department of Disinvestment as Department of Investment and Public Asset Management (DIPAM) in Budget, Finance Minister Arun Jaitley had said it “will adopt a comprehensive approach for efficient management of the government investment in CPSEs by addressing issues such as capital restructuring, dividend, bonus shares”.
Post this, DIPAM has helped the exchequer garner Rs 4,500 crore through buyback of shares by Hindustan Aeronautics and Bharat Dynamics in March. While HAL had cash balance of Rs 17,671 crore, BDL’s stood at Rs 3,669 crore.