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NTPC disinvestment gets off to flying start

LiveMint logoLiveMint 29-08-2017 PTI

New Delhi: The government’s 5% stake sale in NTPC Ltd on Tuesday got off to a flying start with 86% of shares reserved for institutional investors getting subscribed by afternoon.

The government is selling over 41.22 crore shares or 5% stake in state-run power producer NTPC with an option to retain over-subscription of similar amount. At the floor price of Rs168 apiece, sale of 5% stake would fetch around Rs7,000 crore to the exchequer.

In today’s offer for sale (OFS), the government is selling over 32.98 crore shares to institutional buyers. Institutional investors had placed bids for 28.4 crore (28,47,75,011) shares, or 86% of total size, by 1200 hrs, the National Stock Exchange (NSE) data showed.

The OFS issue will open for retail investors tomorrow. However, in secondary market, shares of NTPC fell 3% to Rs168.15 per scrip on the BSE.

The government has so far raised over Rs8,800 crore through disinvestment in six companies in this fiscal, including selling a stake in Larsen & Toubro Ltd 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. This includes Rs46,500 crore from minority stake sale, Rs15,000 crore from strategic disinvestment and Rs11,000 crore from the listing of PSU insurance companies.

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