The government will sell 9.5 per cent stake in country's largest power producer NTPC on Thursday at a likely price of Rs 145 per share, nearly seven per cent discount to the current market price.
The government will sell 9.5 per cent stake in country's largest power producer NTPC on Thursday at a likely price of Rs 145 per share, nearly seven per cent discount to the current market price. The NTPC disinvestment, which would be the biggest so far this fiscal, is expected to garner about Rs 12,000 crore for the exchequer.
An Empowered Group of Ministers (EGoM) on disinvestment chaired by Finance Minister P Chidambaram today approved the stake sale to be held on February 7. Sources said that price for stake sale is likely to be fixed at Rs 145 per share. This would be a discount of nearly seven per cent to today's closing price of Rs 155.60 apiece on BSE.
"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 here today. 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 tomorrow. The government plans to sell over 78.32 crore shares or 9.5 per cent stake in NTPC through offer for sale (OFS). It currently holds 84.50 per cent stake in NTPC.
Citigroup, Morgan Stanley, Goldman Sachs, Deutsche Equities, Kotak Securities and SBICAP Securities are the merchant bankers for the stake sale.
The Disinvestment Department 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.
NTPC stock price
On September 12, 2014, NTPC closed at Rs 137.95, down Rs 2.1, or 1.5 percent. The 52-week high of the share was Rs 168.80 and the 52-week low was Rs 110.90.
The company's trailing 12-month (TTM) EPS was at Rs 12.91 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 10.69. The latest book value of the company is Rs 104.08 per share. At current value, the price-to-book value of the company is 1.33.
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