Govt sells 7% in NTPC to raise Rs 9,100 cr
The government has received bids for 7 per cent stake in India's largest power producer NTPC, which will fetch about Rs 9,100 crore to the exchequer.
At the end of the two-day offer for sale (OFS), the government retained over-subscription it had received from institutional investors after retail investors bid for only 73 per cent of the quota allocated for them.
The government had planned to sell over 41.22 crore shares, or 5 per cent holding, through the two-day OFS, with an option to retain a similar portion in case of over- subscription.
On the opening day yesterday, institutional investors bid for 46.35 crore shares against 32.98 crore shares offered to them, according to stock exchange data.
Today, retail investors bid for 8.45 crore shares against 11.58 crore shares on offer.
Officials said the government decided to retain over- subscription, and after adjustments a total of 7 per cent stake was sold in the OFS, garnering Rs 9,100 crore.
The shares were offered at a floor price of Rs 168 apiece.
Shares of NTPC closed marginally lower at Rs 168 on the BSE.
The government has so far this fiscal raised over Rs 8,800 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 Rs 72,500 crore targeted to be raised in 2017-18 through stake sale in PSUs.
The total sum includes Rs 46,500 crore from minority stake sale, Rs 15,000 crore from strategic disinvestment and Rs 11,000 crore from listing of PSU insurance companies.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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