NTPC share sale subscribed 1.41 times

The government’s 5% stake sale offer in NTPC Ltd was lapped up by institutional investors who over-subscribed the portion reserved for them by putting in bids worth ₹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 ₹168 a piece, the bid are worth ₹7,790 crore at the close of market hours.

Bidding for retail investors, who will be offered 5% discount over the floor price, will open on Wednesday.

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

Shares of NTPC closed at ₹168.50, down 2.80% over previous close on the BSE.

The government has so far this fiscal raised over ₹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.

This is against ₹72,500 crore targeted to be raised in 2017-18 through stake sale in PSUs.

The total includes ₹46,500 crore from minority stake sale, ₹15,000 crore from strategic disinvestment and ₹11,000 crore from listing of PSU insurance companies.