Government sells 7% stake in NTPC to raise Rs9,100 crore
New Delhi: The government has received bids for 7% stake in India’s largest power producer NTPC, which will fetch about Rs9,100 crore to the exchequer.
At the end of the two-day offer for sale (OFS), the government retained subscription it had received from institutional investors after retail investors bid for only 73% of the quota allocated for them.
The government had planned to sell over 41.22 crore shares, or 5% holding, through the two-day OFS, with an option to retain a similar portion in case of over- subscription. On the opening day yesterday, institutional investors bid for 46.35 crore shares against 32.98 crore shares offered to them, according to stock exchange data. Today, retail investors bid for 8.45 crore shares against 11.58 crore shares on offer.
Officials said the government decided to retain over- subscription, and after adjustments a total of 7% stake was sold in the OFS, garnering Rs9,100 crore. The shares were offered at a floor price of Rs168 apiece. Shares of NTPC closed marginally lower at Rs168 on the BSE. The government has so far this fiscal raised over Rs8,800 crore through disinvestment in six companies, including selling stake in L&T through Specified Undertaking of Unit Trust of India (SUUTI), and one share buyback.
This is against Rs72,500 crore targeted to be raised in 2017-18 through stake sale in PSUs. The total sum includes Rs46,500 crore from minority stake sale, Rs15,000 crore from strategic disinvestment and Rs11,000 crore from listing of PSU insurance companies.