NTPC's offer-for-sale gets good response from institutions

State-run power producer NTPC's share sale got over in the first half of the first trading session today with the Rs5,000-crore offer-for-sale (OFS) subscribed 1.8 times, when it was open for subscription to institutional investors.

In fact, the OFS was subscribed 1.23 times in just the first half of the trading session.

However, the share price fell 3.39 per cent to Rs122.7 on the National Stock Exchange.

The stake sale will be open for retail investors on Wednesday. Retail investors, for whom 20 per cent shares have been reserved, will also get a discount of 5 per cent over their bid price.

Institutional investors who wish to modify their bids can do so on Wednesday. However, they cannot place fresh bids.

NTPC is the first company to hit the markets under the revised OFS guidelines announced by market regulator Sebi. The floor price for the offer has been fixed at Rs122.

Post-OFS, the government's stake in the company will come down to 69.96 per cent from 74.96 per cent.

SBI CAP Securities, ICICI Securities, Edelweiss Securities and Deutsche Equities India are brokers for the OFS on behalf of government.

The government had raised around Rs11,400 crore by selling 9.5 per cent stake in NTPC through the OFS route in 2013.