Sovereign wealth fund GIC of Singapore has cornered shares worth Rs 1,000 crore in NTPC divestment in which foreign funds bought almost 45 per cent of shares put on sale.
"Foreign institutional investors have been allocated 44.92 per cent of shares, while banks and insurance companies got allotment of 11.05 per cent and 24.87 per cent, respectively," an official source said.
The cut-off price for the share sale has been fixed at Rs 145.55 apiece and the final realisation of the government stands at Rs 11,496.39 crore from NTPC disinvestment.
"GIC of Singapore has bid for the maximum quantum for the shares at over Rs 1,000 crore," the source said
Shares of NTPC are quoting at Rs 148.55, 0.27 per cent higher than previous close on BSE today.
The allotment to country's largest insurer LIC was 15 per cent of the total allotment made, the official said, adding that mutual funds got 8.35 per cent of the total shares on the block.
The blockbuster share sale yesterday was over-subscribed 1.7 times. The offer price was lower than the scrip's trading rate on stock exchanges and the issue received tremendous response from foreign investors.
The government had fixed the floor price or the minimum offer price at Rs 145 apiece. The indicative price, which is the weighted average price of all valid bids, came in at Rs 145.91 at the close of auction.
The total demand received for the offer was for 132.84 crore shares, which is 1.7 times of the 78.32 crore shares or 9.5 per cent stake on the block. Government holding will now come down to 75 per cent in NTPC.
The total proceeds realised from disinvestment would be over Rs 21,500 crore so far this fiscal, with the success of NTPC issue helping government inch towards the Rs 30,000 crore budgeted target.
Receipts from the stake sale would also help government restrict its fiscal deficit at 5.3 per cent of GDP in the ongoing fiscal.
NTPC stock price
On November 27, 2015, at 15:40 hrs NTPC was quoting at Rs 133.20, up Rs 0.35, or 0.26 percent. The 52-week high of the share was Rs 164.70 and the 52-week low was Rs 107.20.
The company's trailing 12-month (TTM) EPS was at Rs 13.40 per share as per the quarter ended September 2015. The stock's price-to-earnings (P/E) ratio was 9.94. The latest book value of the company is Rs 99.03 per share. At current value, the price-to-book value of the company is 1.35.
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