The government will sell 5% stake in the country’s largest power producer National Thermal Power Corp. Ltd (NTPC) at Rs168 per share to raise about Rs7,000 crore.
The share sale through an offer for sale (OFS) will happen over two days beginning Tuesday, an official said in New Delhi.
NTPC shares closed 2.5% higher on the BSE at Rs173.55 apiece on Monday.
The official said the government will sell 5% through OFS, with an option to retain another 5% in case of over-subscription. The floor price of Rs168 is at a discount of 3% over Monday’s closing stock price.
The government has so far this fiscal raised over Rs8,800 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 Rs72,500 crore targeted to be raised in 2017-18 through stake sale in PSUs. This includes Rs46,500 crore from minority stake sale, Rs15,000 crore from strategic disinvestment and Rs11,000 crore from the listing of PSU insurance companies.