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NTPC OFS: Institutions lap up 46 crore shares, put in bids worth Rs7,800 crore

LiveMint logoLiveMint 29-08-2017 PTI

New Delhi: The government on Tuesday sold 46.35 crore shares in National Thermal Power Corporation Ltd (NTPC) for about Rs7,800 crore on the opening day of its disinvestment in the country’s largest power producer.

As many as 32.98 crore shares were offered to institutional buyers on the first day of the offer for sale (OFS), and the portion was over-subscribed 1.41 times. The government has decided to retain the entire over- subscription.

At the floor price of Rs168, the bid for 46.35 crore shares is worth Rs7,790 crore.

Retail investors, who will be offered 5% discount, can bid for shares on Wednesday. A total of 8.24 crore shares have been reserved for retail investors, with an option to retain an over-subscription of a similar quantity. 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.

Shares of NTPC closed at Rs168.50, down 2.80% over the previous close 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.

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