Disinvestment dept, NTPC hold talks on stake sale
Determined to push through its stake sale in the current fiscal year, the Department of Disinvestment (DoD) is holding hectic consultations with senior officials of state-run power generation major NTPC. Powering up govt resourcesbusiness Updated: Oct 22, 2012 01:15 IST
Determined to push through its stake sale in the current fiscal year, the Department of Disinvestment (DoD) is holding hectic consultations with senior officials of state-run power generation major NTPC.
The DoD has already circulated a Cabinet note for 9.5% stake dilution of NTPC, which could help the Centre to raise about Rs. 13,100 crore.
"The DoD held series of meetings last week with the senior management team of NTPC to work out plans for the success of the company's stake sale," a senior government official said.
The government has proposed to disinvest 9.5% paid up equity of NTPC through Offer for Sale (OFS) of shares through the stock exchanges.
The government currently holds 84.5% stake in the Maharatna company. Post disinvestment, its stake would come down to 75%.
NTPC became public with its initial public offering hitting the market in 2004. Thereafter in 2009, the government further diluted its stake in the company through Follow-on Public Offer.
The power generation company had reported a net profit of Rs. 9,223.7 crore in the last fiscal year as against Rs. 9,102.6 crore in 2010-11.
NTPC recorded a turnover of Rs. 61,002.2 crore in 2011-12 as compared to Rs. 54,704.6 crore in the previous fiscal year.
The market capitalisation of the company, incorporated in 1975, stood at Rs. 1.3 lakh crore at the end of March 2012.
Shares of NTPC closed at Rs. 166.3 on the BSE last Friday.