Govt kicks off NTPC stake sale, looks for merchant bankers | business | Hindustan Times
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Govt kicks off NTPC stake sale, looks for merchant bankers

business Updated: Nov 27, 2012 22:47 IST
HT Correspondent
HT Correspondent
Hindustan Times
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The government on Tuesday initiated the process of offloading 9.5% stake in NTPC by inviting bids from the merchant bankers.

At the current market price, NTPC disinvestment could fetch around Rs. 12,400 crore to the exchequer.

“Proposals are invited from reputed merchant bankers with experience and expertise in public offerings or OFS in capital markets to act as merchant bankers and to advise the government in the process,” said the Department of Disinvestment (DoD) in a public notice.

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.