The government proposes to offload 9.5 per cent of its equity stake in power generation major NTPC on Thursday through the OFS (Offer For Sale) route, as approved by the Empowered Group of Ministers (EGoM), chaired by Finance Minister P. Chidambaram. The stake sale is expected to fetch about Rs.12,000 crore.
“The EGoM has approved 9.5 per cent stake sale in NTPC. The stake sale will be made on February 7,” Disinvestment Secretary Ravi Mathur told reporters here. The divestment mop-up, he said, “would be, as planned, around Rs.12,000 crore.”
Out of its current shareholding in NTPC at 84.50 per cent, the government proposes to sell over 78.32 crore shares or offload 9.5 per cent its stake the public sector power major through the OFS route. The floor price, or the minimum offer price, Mr Mathur said, would be notified to the stock exchanges on February 6, a day before the sale.
Last month, the government had appointed merchant bankers, including Citigroup, SBI Capital Market and Morgan Stanley, for managing the stake sale.
Meanwhile, the 10 per cent stake sale in Oil India Ltd. (OIL) has fetched the government a total proceeds of Rs.3,141.39 crore, out of which foreign institutional investors (FIIs) accounted for over 60 per cent of the OFS issue. “The net proceeds to the government from OIL OFS are Rs.3,141.39 crore,” an official statement said here, which noted that the minimum cut-off price for allotment of OIL shares was pegged at Rs.520 a share.
With the FIIs getting 60.36 per cent of the allotment, the foreign investors pumped in over Rs 1,800 crore.