NTPC's scrip closed at Rs 173.35, on Monday. At present, the company has a market capitalisation of Rs 1,42,935 crore. After the latest round of sale, the government's stake in NTPC will decline to 59.74%.
State-owned thermal power producer NTPC will divest up to 10% stake this week.
Though NTPC will raise close to Rs 7,000 crore by selling its 5% stake, it has a greenshoe option of another 5% in an event of oversubcription. If that option is exercised, NTPC will raise Rs 14,000 crore.
On Monday, The Union power ministry issued a letter to announce sale of 5% stake or 41,22,73,220 equity shares on Tuesday and Wednesday (August 29 and 30) at the floor price of Rs 168 per share, or a total of Rs 6,926.19 crore.
NTPC's scrip closed at Rs 173.35, on Monday. At present, the company has a market capitalisation of Rs 1,42,935 crore. After the latest round of sale, the government's stake in NTPC will decline to 59.74%.
The offer for sale is open for institutional investors on Tuesday whereas the retail investors would be able to bid on Wednesday.
As per the conditions of offer for sale, a retail investor will not be able to bid for share of over Rs 2 lakh.
Last fiscal the government had raised Rs 46,247 crore through divestment as against the target of Rs 56,500 crore. The government had revised its divestment target on February 1, 2017 to Rs 45,500 crore.
During this fiscal, the government has raised over Rs 9,300 crore by offloading minority stakes in nine companies. This year the government plans to raise Rs 72,500 crore through divestment.
In the last five months, the government got two public sector undertakings – Housing and Urban Development Corporation and Cochin Shipyard – listed. Stakes in six other companies too were sold by the government.
During the next seven months, it plans to come up with initial public offers for General Insurance Corporation of India, The New India Assurance Co, United India Insurance Co, Oriental Insurance Co Ltd and National Insurance Co.
Apart from those, stakes in over 20 companies will be offloaded, these include Power Finance Corporation, NHPC, Indian Oil Corporation and Neyveli Lignite Corporation India.
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