Union Govt to Sell Off 5% Stake in NTPC  | CORPORATE ETHOS

Union Govt to Sell Off 5% Stake in NTPC 

By: | August 29, 2017

Aug 29: The Union Government will today divest 5 per cent stake in NTPC, the country’s largest power producer, at Rs. 168 per share. The stake sale is aimed at mopping up about Rs. 7,000 crore.

According to reports quoting official sources in New Delhi, the divestment is being done via an offer for sale (OFS) and will get underway over two days beginning today.

The government will sell 5 per cent through OFS, with an option to retain another 5 per cent in case of over-subscription, reports added. The floor price of Rs. 168 is at a discount of 3 per cent over yesterday’s closing stock price.

As many as six companies have taken the divestment route already, and the government has raised over Rs 8,800 crore so far this fiscal.

The amount mopped up is against Rs. 72,500 crore targeted to be raised in 2017-18 through stake sale in PSUs. This includes Rs. 46,500 crore from minority stake sale, Rs. 15,000 crore from strategic disinvestment and Rs. 11,000 crore from the listing of PSU insurance companies, the reports added.