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Last Updated : Feb 23, 2016 01:29 PM IST | Source: Moneycontrol.com

NTPC shares fall over 3% as Rs 5000-cr offer for sale opens

The government is going to sell 41,22,73,220 equity shares (representing five percent stake) in NTPC via offer-for-sale (OFS) with hopes of collecting around Rs 5,000 crore.

 
 
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Moneycontrol Bureau


Shares of NTPC fell more than 3 percent intraday Tuesday as its two-day offer for sale has opened for subscription. In previous session also ahead of OFS announcement, the stock lost more than 2 percent.


The government is going to sell 41,22,73,220 equity shares (representing five percent stake) in NTPC via offer-for-sale (OFS) with hopes of collecting around Rs 5,000 crore.

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Stake sale is spread over two days with non-retail investors (institutional bidders) getting the first chance to participate in OFS today. On second day, retail as well as non-retail investors are allowed to buy shares.


NTPC is the first company to hit the markets under the revised offer for sale (OFS) guidelines announced by market regulator SEBI, according to which OFS is spread for two days now.


Foor price for the offer is fixed at Rs 122, a 3.8 percent discount to Monday's closing price of Rs 126.85.


Out of total OFS, 20 percent of offer is reserved for retail investors, who will get shares at a 5 percent discount to cut-off price.


"Unsubscribed portion of shares reserved for retail investors shall be allotted to investors in non-retail category choosing to carry forward their bids on T+l day and who have not been allotted shares on T day. However, such investors are required to indicate their willingness to carry forward their bids on T+1 day," NTPC said in its filing.


Its 5 percent stake sale was approved by the Cabinet in May. The government currently holds 74.96 percent stake in the country's largest power generation company.


NTPC is the sixth PSU to hit markets in the current fiscal.


SBICAP Securities, ICICI Securities, Edelweiss Securities and Deutsche Equities India are brokers for OFS on behalf of seller (government.


At 10:27 hours IST, the scrip of NTPC was quoting at Rs 124.10, down Rs 2.75, or 2.17 percent on the BSE.

Posted by Sunil Shankar Matkar



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First Published on Feb 23, 2016 10:57 am
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