NTPC stake sale on Feb 7, may fetch govt Rs 12,000 cr

NTPC stake sale on Feb 7, may fetch govt Rs 12,000 cr

BT Online Bureau   New Delhi     Last Updated: February 5, 2013  | 19:50 IST

The government will offload 9.5 per cent stake in power major National Thermal Power Corporation (NTPC) on February 7, which may fetch the exchequer around Rs 12,000 crore.

The Empowered Group of Ministers (EGoM) on disinvestment, chaired by Finance Minister P Chidambaram, met on Tuesday.

The government plans to sell over 78.32 crore shares, or 9.5 per cent stake, through offer for sale (OFS). It currently holds 84.50 per cent stake in NTPC.

"The EGoM has approved 9.5 per cent stake sale in NTPC. The stake sale will be made on February 7," Disinvestment Secretary Ravi Mathur told reporters in the national capital.

When asked how much would be raised through the sale, Mathur said: "It would be as planned around Rs 12,000 crore". He said the floor price, or the minimum offer price, would be notified to the stock exchanges on Wednesday.

The department has recently completed 10 per cent stake sale of the Oil India (OIL) through the auction route raising over Rs 3,141 crore for the government. The government has raised over Rs 10,000 crore though PSU stake sale so far this fiscal.

Besides OIL, the government has raised Rs 6,000 crore from stake sale in NMDC, Rs 800 crore from Hindustan Copper and Rs 125 crore from NBCC.

Shares of NTPC closed at Rs 155.60, up 0.16 per cent on the Bombay Stock Exchange (BSE). At the current market price, the stake sale could fetch over Rs 12,100 crore to the exchequer.

The government had last month appointed merchant bankers, including Citigroup, SBI Capital Market and Morgan Stanley, for managing the NTPC stake sale.

With inputs from PTI

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