Govt to sell 5% in NTPC tomorrow, to raise Rs5,000 cr

The government will be selling 412.2 million shares, or a 5 per cent stake, in the country's top power producer, NTPC, at floor price of Rs122 per share, to raise a total of Rs5,029 crore.

The stake sale would be spread over two days, ie, on Tuesday and Wednesday and the sale of shares will remain open from 09:15 to 15:30 hours on both the days.

Institutional bidders will get the first chance to buy shares on Tuesday while retails investors, for whom 20 per cent shares have been reserved, will get to bid on 24 February.

"Retail investors shall be allowed to place their bids only on the T+1 day. Further, those non-Retail investors who have placed their bids on T day and have chosen to carry forward their bids to T+1 day, shall be allowed to revise their bids on T+1 day as per the SEBI OFS Circulars," NTPC said.

The floor price of Rs122 apiece is at a 3.82 per cent discount to Monday's closing price of NTPC stock of Rs126.85.

"The floor price for the offer shall be Rs 122 per equity share," NTPC said in a regulatory filing.

A total of 41.22 crore shares or 5 per cent in NTPC could fetch Rs5,029 crore to the exchequer at the floor price of Rs121 apiece.

NTPC is the first company to hit the markets under the revised offer for sale (OFS) guidelines of market regulator Sebi.

The allocation shall be at or above the floor price on price priority basis at multiple clearing prices.

However, allocation to retail investors, who have the option to bid at the cut off price, can be below the floor price on account of retail discount offered, it added.

A 5 per cent additional discount would be offered to retail investors who bid for shares worth not more than Rs2 lakh.