Govt plans to divest 4.75% stake in NPTC
THE government is planning to divest 4.75% of its stake in NTPC. The country’s biggest power generation utility could be able to raise about Rs 6,000 crore in this stake sale through a follow on public offer.
By TNN |
NEW DELHI: THE government is planning to divest 4.75% of its stake in NTPC. The country’s biggest power generation utility could be able to raise about Rs 6,000 crore in this stake sale through a follow on public offer.
Sources said the power ministry had approached the department of disinvestment for offloading the stake. NTPC had a few years back proposed an initial public offering (IPO) of 24%. But in February 2004, the government allowed NTPC to go for an IPO of 10% of its paid-up capital in one or more stages to augment resources.
The company, however, offloaded only 5.25%, leaving balance 4.75% of approved IPO for later date. The IPO of 5.25 % was tagged with government divesting an equal shareholding. Subsequent to the offer, government shareholding in NTPC fell to 89.5 % from 100 %. The company had raised about Rs 5,400 crore through its IPO.
Sources said the power ministry had approached the department of disinvestment for offloading the stake. NTPC had a few years back proposed an initial public offering (IPO) of 24%. But in February 2004, the government allowed NTPC to go for an IPO of 10% of its paid-up capital in one or more stages to augment resources.
The company, however, offloaded only 5.25%, leaving balance 4.75% of approved IPO for later date. The IPO of 5.25 % was tagged with government divesting an equal shareholding. Subsequent to the offer, government shareholding in NTPC fell to 89.5 % from 100 %. The company had raised about Rs 5,400 crore through its IPO.
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