Nearly 50% NTPC staff participated in divestment of company
1 min read 15 Jul 2016, 10:09 PM ISTThe offer-for-sale for NTPC employees got an enthusiastic response with nearly 50% participating in the OFS, says the finance ministry
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New Delhi: Close to 50% employees of NTPC had participated in the disinvestment of state-run power producer and the government realised ₹ 203.78 crore. The offer of shares by government to eligible employees of NTPC Limited was carried out from 27 June to 05 July.
“The offer-for-sale for employees of NTPC Limited got an enthusiastic response from the employees with nearly 50% participating in the offer," the finance ministry said in a statement. Employees applied for 85.3% of about 2 crore shares on offer for allotment.
The offer price for them was ₹ 115.9 per share. This is one of the highest employees participation in post OFS disinvestment process of any company, the ministry said, adding the employees participation in the disinvestment process “gives a sense of belongingness to the company".
The employee offer was made pursuant to the decision of the government to disinvest 5% of its stake in NTPC on 13 May last year. The government had approved that shares may also be allotted to the eligible and willing employees of the company up to a maximum of 0.25% of the paid up equity capital at a discount of 5%.
The OFS of NTPC was completed on 24 February. The total realisation was ₹ 5,014.55 crore. The lowest cut off during the OFS was ₹ 122 per share. Accordingly, after 5% discount the offer price for employees was ₹ 115.90 per share.
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