In the financial market, there is a new upcoming Bond Issue by OPG Power Generation Private Limited and everyone has their eyes on it. The only reason behind this is that OPG Power Generation is a prominent player in the Power Generation sector in India. Their main focus is on producing electricity through multiple sources like Solar power, Thermal power, and Wind power. They have a record of completing a number of efficient projects.
Recently OPG Group has launched a fresh Bond offering. This issuance opens up an investment prospect for both individuals and institutions aiming to invest in a potentially lucrative avenue. The newly introduced Bond issue acts as an invitation, not only for individual investors but also for institutional entities, to consider allocating their financial resources to this particular opportunity.
| Issuer | OPG Power Generation Private Limited |
| Rating | CRISIL A+ |
| Security Type | Listed, Senior Secured, Rated, Listed, Redeemable NCDs |
| Listing | BSE |
| Coupon | 10.75% p.a.p.q. (Approx. 11.19% annualized) |
| Frequency of Interest Payment | Quarterly |
| Principal repayment | Bullet payment at maturity |
| Call Option/ Put Option | N.A. |
| Tenure | 3 Years (36 Months) from the deemed date of allotment |
| Issue Size | INR 50 crore (INR 25 crore Base Issue + INR 25 crore Green Shoe Issue) |
| Mode of Issuance | Private Placement |
| ISIN | INE0D8F07048 |
| Face Value | INR 1,00,000.00 (One Lakhs Only) |
| Object of Issue | General Corporate Purposes. |
| Security for the Issue | Pari Passu First charge on the fixed assets (moveable and immovable) (both present and future). |
Webinar On OPG Power Generation Bond Issue
A webinar is going to be conducted by BondsIndia in an interactive and insightful session on the dynamic Bond Market. It will be conducted by Mr. Ajit Pratap Singh (Chief Financial Officer, OPG Power Generation) and Ms. K.V Lakshmi (Company Secretary, OPG Power Generation) at 04:00 PM, 28th August 2023. The topics they will cover during the Webinar are:
- Introduction to OPG Power Generation Private Limited
- Unveiling Financial Performance and Future Outlook
- Economic and Sector Updates for Informed Decisions
- A Glimpse into the Promising Future Outlook
- Insightful Exploration of Issue Terms and Structure
This webinar will be highly beneficial for investors who are looking forward to gaining invaluable insights into the latest economic trends and investment strategies to enter the Bond market.
Key Features of the Group Captive and Merchant Model OPG follows:
Group Captive
- Bilateral arrangements with utilities, traders, and consumers.
- Providing dependable and uninterrupted power supply at peak times too.
- Presenting competitive rates compared to other available tariffs.
Merchant Model
- Direct Sales with traders.
- Adaptability and Exposure to spot pricing fluctuations.
- Profits linked to prevailing pricing conditions.
- Restricted to trading for a single day in the future.
Why should you Invest in OPG?
- Strong Portfolio of Operating Assets – OPG has established a strong foundation of functional resources totalling 414 MW – maintaining a consistent performance level that surpasses industry norms.
- Skilled Team – The Company has built a solid reputation for project delivery and is a front-runner in both operational and financial performance within the industry.
- Efficient Execution of Plans – OPG’s internal team of specialists is responsible for designing, implementing, and overseeing projects. These projects are completed within scheduled timelines and financial plans.
- Promising Power Sector – India’s GDP growth rate of more than 7%, resulting in a substantial appetite for power. The development of the power sector has become a pivotal focus for the Government, marked by recent implementations of reforms and policies aimed at enhancing trading circumstances.
- Cashflow Generation – Their goal in distributing dividends is to use their net profits and anticipate raising extended-term dividends from 15% to 33% of earnings, all the while reinvesting in promising growth prospects.
Benefits of Investing in OPG Bonds Issue
- Steady Income Stream
The upcoming Bond issue by OPG will provide the benefit of a constant stream of income. This feature can be especially attractive to investors who value stability and the ability to forecast their extra earnings.
- Risk Analysis
Like any form of investment, there come inherent risks. Prospective investors should engage in thorough research to comprehend the risk elements connected to the Bond issue, the financial well-being of the company, and the prevailing market circumstances.
- Yield and Returns
The objective of the Bond issue is to offer investors an opportunity to attain appealing yields. These profits can function as an extra income source and elevate the overall investment portfolio.
- Market Impact
Opting to invest in OPG Power Generation’s Bond issue has the potential to indirectly foster the progress and advancement of India’s power generation domain. This aligns harmoniously with the country’s energy objectives and the broader expansion of its infrastructure.
FAQs
Ans – The Bond’s coupon rate is 10.75%.
Ans – The interest amount paid on these Bonds is most probably on a semi-annual basis.
Ans – The bond has received a CRISIL A+ credit rating, indicating the issuer’s financial strength and the probability of default.