Govt Of India To Sell 5 pc Stake In NTPC Tomorrow

22 February, New Delhi

The Government will sell 5 per cent of its stake in NTPC tomorrow at the floor price of Rs 122 per share to raise Rs 5,029 crore.

The offer will be spread over two days. On Tuesday, only institutional players are allowed to place their bids while retail buyers, for whom 20 per cent shares are reserved, can participate in bidding on Wednesday.

The President of India (acting through the Ministry of Power, Government of India (the “Seller”), the Promoter of NTPC Ltd (the “Company”) has submitted to BSE a copy of Notice of Offer for sale up to 41,22,73,220 equity shares of the Company, on February 23 (for non-retail investors) and February 24 (for retails Investors and for non-retails Investors), of face value of Rs 10 each, representing 5 per cent of the total paid up equity share capital of the Company (the “Offer Shares”), through a separate, designated window of the BSE Ltd and the National Stock Exchange of India Ltd, NTPC informed stock exchanges in a regulatory filing.

The floor price of Rs 122 apiece is at a 3.82 per cent discount to today’s closing price of Rs 126.85.A 5 per cent additional discount would be offered to retail investors, which are those who bid for shares worth not more than Rs 2 lakh.The Cabinet in May had approved the 5 per cent stake sale in NTPC.

The government holds 74.96 per cent in the firm. It had last sold stake in NTPC in February 2013.NTPC would be the sixth PSU to hit markets in the current fiscal. The disinvestment department has held roadshows in Singapore, Hong Kong, London and in the US.Again its target to raise Rs 69,500 crore in 2015-16 through disinvestment, the Government has so far raised over Rs 13,300 crore through stake sale in five PSUs — EIL, Indian Oil Corp, PFC, REC and Dredging Corporation.