Govt to net Rs 9,100 crore from sale of 7% stake in NTPC

NEW DELHI: The government has received bids for 7% stake in India's largest power producer

NTPC

, which will fetch the exchequer about Rs 9,100 crore. At the end of the two-day

offer for sale

(OFS), the government retained over-subscription it had received from

institutional investors

after

retail investors

bid for only 73% of the quota allocated for them.

The government had planned to sell over 41crore shares, or 5% holding, through the two-day OFS, with an option to retain a similar portion in case of over-subscription. On the opening day on Tuesday, institutional investors bid for more than 46 crore shares against nearly 33 crore shares offered to them, according to stock exchange data.

On Wednesday , retail investors bid for 8.5 crore shares against 11.6 crore shares on offer. Officials said the government decided to retain over-subscription, and after adjustments a total of 7% stake was sold in the OFS, garnering Rs 9,100 crore. The shares were offered at a floor price of Rs 168 apiece. Shares of NTPC closed marginally lower at Rs 168 on the BSE.

The government has so far this fiscal raised over Rs 8,800 crore through disinvestment in six companies and one share buyback.

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