NTPC's mega share sale was over-subscribed just before the market close on Thursday, helping the government fetch close to Rs. 11,400 crore -- the biggest disinvestment proceed this fiscal.
The auction, which started in the morning, got bids for over 84.06 crore shares as of
3:05pm, against an offer of over 78.32 crore, as per data on the stock exchanges.
The indicative price, which is the weighted average price of all valid bids, was Rs. 145.46 a share. At this price, the government would garner at least Rs. 11,392 crore.
The government had fixed the floor price for the 9.5% share auction of NTPC at Rs. 145 apiece.
Shares of NTPC were quoting at Rs. 148.50, down 2.50% from its previous close on BSE. During the trade, NTPC scrip fell to a low of Rs. 147.65.
Bids for over 43.49 crore shares were with 100% margin, meaning if the bidder decides to withdraw later they can do so. Bids that came in with zero% margin were over 40.56 crore shares, according to the NSE data.
The final bids and the cut-off price is likely to be announced later in the day after the stock exchanges compile all data.
The government is selling 78.32 crore shares or 9.5% of its stake in NTPC through the offer for sale route.
Government holds 84.50% stake in NTPC. After stake sale, its holding will come down to 75%.
Citigroup, Morgan Stanley, Goldman Sachs, Deutsche Equities, Kotak Securities and SBI Cap Securities are acting as the merchant bankers for the stake sale.
Disinvestment Secretary Ravi Mathur had earlier said the government would be able to raise around Rs. 12,000 crore from the NTPC stake sale.
So far this fiscal the government has already raised over Rs. 10,000 crore through stake sale in PSUs like Oil India, NMDC and HCL.