LIC hikes stake in NTPC to 14.25%

A day after the government raised about Rs 9,100 crore by selling 7% stake via OFS, the Life Insurance Corporation of India (LIC) now commands 14.24% stake in NTPC. It has increased its stake from 11.15% to 14.24%. LIC could have invested around Rs 4,275 crore, based on the floor price of Rs 168, which is nearly half of the total amount raised by the government. 
 
LIC acquired 25.44 crore shares or 3.08% of the total paid-up capital of the company. The OFS saw bids for 54.8 crore shares against 82.4 crore shares on offer, including the green shoe option. The shareholding of the government is likely to have come down to 63.1% from 69.74%. 
 
The government expects to raise Rs 72,500 crore in FY18 through a mix of minority stake sale, strategic divestments, and through state-owned listing companies. NHPC, HCL, NBCC, MOIL and BEL were among the companies in which the government sold stakes.
 
NTPC is engaged in the generation and sale of electricity. The principal business activity of the company is electric power generation through coal-based thermal power plants. The company has an installed capacity of 47,178 megawatts (MW), including joint ventures (JVs) with over 18 coal-based, seven gas-based and one hydro-based station.