New Delhi: The government's Rs 7,000-crore share sale in India's largest power producer, NTPC, on Tueday got off to a bumper start, with non-retail investors lapping up the quota reserved for them before close of market hours.
The government is selling over 41.22 crore shares, or 5 per cent holding, through the two-day offer for sale (OFS), with an option to retain a similar portion in case of over- subscription.
The share sale has a floor price of Rs 168, and a 5 per cent stake sale would fetch Rs 7,000 crore to the exchequer.
On the opening day of the sale, which was open to non-retail investors, over 38.66 crore shares were bid till 1425 hours, according to stock exchange data. This was 1.17 times of the 32.98 crore shares reserved for them.
Bidding by non-retail or institutional investors is slated to close at 1530 hours.
Retail investors, who will be offered a 5 per cent discount, can bid for shares on Wednesday. Over 8.24 crore shares have been reserved for them.
NTPC stock was trading 2.91 per cent lower at Rs 168.30 on the BSE.
According to the offer document, the company employees will be eligible to apply for shares up to Rs 2 lakh each only. The floor price of Rs 168 was at a discount of 3 per cent to Monday's closing stock price.
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. This 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.