Bankers are required to submit their application by December 14. At present, the government holds around 84.5% equity in the company, which has a paid up equity capital of Rs. 8,245.5 crore.
The sale would happen via the offer for sale route (OFS) through stock exchanges.
Shares of NTPC closed at Rs. 158.6, down 0.38% on the Bombay Stock Exchange (BSE) on Tuesday.
NTPC became a listed company in 2004. Thereafter in 2009, government further diluted its stake in the power producer.
The government has set a target of mopping up Rs. 30,000 crore through disinvestment in the current fiscal year. It has already raised over Rs. 800 crore through stake sale in Hindustan Copper.