Buzzing Stock: NTPC stake sale gets off with good start
Government plans to raise Rs.13,800 crore via 10% stake sale in NTPC. The government is selling 5% stake through an offer for sale (OFS) at a floor price of Rs.168, and another 5 per cent via green shoe option. This comes under the government’s plan to raise Rs.72,500 crore via stake sale in PSU’s.
The stake sale in NTPC would earn the government an amount of Rs.7,000 crore. This includes selling of 41.23 crore shares or 5 per cent holding. On the opening day, the offer was open for Institutional investors, which was oversubscribed by 1.12 times at 14:25 hrs against the reserved quota of 32.98 crore shares.
Rest of the 8.24 crore shares will be open for sale tomorrow for retail investors with 5 per cent discount. Also, company employees will be able to apply for 2 lac shares only. The government has fetched Rs. 8,800 crore via divestment in six companies. After the stake sale government's holding in NTPC will come down to 59.7 per cent against 69.7 per cent currently.
The NTPC stock tanked as much as 2.8 per cent in today’s trading session and closed down at Rs.168.5 per share.