In a boost to the Narendra Modi government's disinvestment programme, state-owned NTPC's 5 per cent stake sale took off on Tuesday with 86 per cent of shares reserved for institutional investors getting subscribed by afternoon.
The sale of 5 per cent stake would fetch around Rs 7,000 crore to the exchequer at the floor price of Rs 168 apiece.
Over 41.22 crore shares of NTPC are on offer under the divestment programme with an option to retain over-subscription of similar amount.
The government is selling over 32.98 crore shares to institutional buyers in the offer for sale (OFS).
Institutional investors had placed bids for 28.4 crore (28,47,75,011) shares, or 86 per cent of total size, by 1200 hrs, the NSE data showed. The OFS issue will open for retail investors tomorrow.
However, in secondary market, shares of NTPC fell 3 per cent to Rs 168.15 per scrip on the BSE. The government has so far raised over Rs 8,800 crore through disinvestment in six companies in this fiscal, including selling a 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 the listing of PSU insurance companies.