NTPC's weight in MSCI India index would rise from 0.63 percent to 1.79 percent as the company's free float stock increases after its offer for sale, Citigroup said in a note, quoting MSCI.
The government will sell 783.26 million shares, or 9.5 percent stake, in NTPC through a single-day auction, as part of its drive to raise Rs 27,000 crore by selling shares in some state enterprises in the 2012-13 fiscal year.
Citigroup also adds that NTPC's weight would increase in FTSE and Nifty indexes as well in March and April/May respectively, which should lead to a lot of passive demand/flows in the stock.
The investment bank expects MSCI to implement changes at its quarterly rebalancing on Feb 28.
NTPC stock price
On January 23, 2015, NTPC closed at Rs 141.95, up Rs 1.75, or 1.25 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 12.40 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 11.45. 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 1.36.
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