Rs. 11,000 crore
NEW DELHI: In a push to the disinvestment process initiated by the UPA Government in its second innings, NTPC has filed the draft prospectus for its follow on public offer (PFO) with the Securities Exchange Board of India (SEBI) while Power Grid Corporation of India Limited (PGCIL) indicated that its FPO will hit the capital market in the next 6-8 months.
The Union Government is divesting 5 per cent stake in NTPC through the FPO, which is expected to fetch about Rs. 11,000 crore going by current market valuations. Being a fast-track issue, the offer may not take more than 25 days after the draft prospectus is filed. Before this, only SBI and Hindalco offers were on fast-track. The Cabinet Committee on Economic Affairs had last October given its approval for the sale of five per cent Government stake in NTPC.
After the stake dilution, government’s holding in the power utility will come down to 84.5 per cent from 89.5 per cent. Similarly, PGCIL Chairman and Managing Director S. K. Chaturvedi said his company’s FPO could be expected in the second quarter of the next financial year 2010-11. The company plans to raise Rs. 3,000 crore through this offer.