National Thermal Power Corporation is likely to price its shares at a premium of Rs 20 per share for its proposed initial public offer, slated to hit the market in November this year.

The company is hoping to raise up to Rs 1,500 crore (Rs 15 billon) through the public issue and would be approaching the Cabinet with a proposal to enhance its current equity base of Rs 8,000 crore (Rs 80 billion), a company official said.

"We are proposing to come out with an IPO for a quantum of around five per cent of the equity base. A proposal to this effect has already been sent to the ministry of power for approval," NTPC's chairman and managing director C P Jain said while announcing the company's financial results for 2002-03.

The corporation reported a marginal jump in its net profit for the fiscal at Rs 3,574.15 crore (Rs 35.74 billion) compared with Rs 3,539.62 crore (Rs 35.39 billion) in the previous fiscal.

NTPC, however, recorded a turnover of Rs 19,946.61 crore (Rs 199.46 billion) during 2002-03 as against Rs 18,583.74 crore (Rs 185.83 billion) during 2001-02. The corporation has paid an interim dividend of Rs 400 crore (Rs 4 billion) to the government for the last fiscal.

The proceeds from the issue would be utilised for part-financing the 20,000 mw capacity addition planned during the next 10 years.

"With a view to realise its vision of becoming a 40,000 mw plus company by 2012, we have chalked out an ambitious capacity addition programme," Jain said. During 2002-03, NTPC achieved a capacity addition of 1,000 mw against a target of 500 mw, he added.

A capacity of 4,800 mw is at present under implementation, Jain said. The Central Electricity Authority has already accorded techno-economic clearance for eight new projects with a total capacity of 8,200 mw to be implemented during the current and the next Five Year plans.

NTPC also signed tripartite agreements with 24 states for recovering Rs 19,383 crore (Rs 193.83 billion) of past dues by way of bonds.

On its proposal for sourcing of liquefied natural gas for the expansion of gas-based projects in the northern and western regions, Jain said the supply and regassification contracts would be awarded by October this year.

NTPC has a 19.44 per cent share of the total installed capacity of the nation and during 2002-03 the corporation contributed 26.51 per cent electricity generated in the country.