NTPC OFS oversubscribed 1.41 times

NEW DELHI: The government's 5 per cent stake sale offer in NTPC was lapped up by institutional investors who over-subscribed the portion reserved for them by putting in bids worth nearly Rs 7,800 crore. 

 

On the first day of the offer for sale (OFS), bids for over 46.35 crore shares, or 1.41 times the 32.98 crore shares available, came in from institutional buyers. 

 

At the floor price of Rs 168 a piece, the bid are worth Rs 7,790 crore at the close of market hours. Bidding for retail investors, who will be offered 5 per cent discount over the floor price, will open tomorrow. 

 

The government is selling over 41.22 crore shares, or 5 per cent holding, through the two-day OFS, with an option to retain a similar portion in case of over-subscription. 

 

Shares of NTPC closed at Rs 168.50, down 2.80 per cent over previous close on the BSE. The government has so far this fiscal raised over Rs 8,800 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.