Govts 5% stake sale in NTPC begins

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The government’s 5% stake sale in power producer NTPC has commenced today on the stock exchanges. The shares, which had at a floor price of ₹122 apiece, will fetch the government ₹5,038 crore if fully subscribed. Currently, the government holds 74.96% stake in the firm, and the last stake sale in NTPC was held in February 2013.The government is selling 41.22 crore shares, or 5 percent, in NTPC at a floor or minimum price of Rs 122 apiece. If fully subscribed, the stake sale would fetch Rs 5,030 crore to the exchequer. In the secondary market, the scrip was trading at Rs 124.80, down 1.62 percent over its previous close. The share sale is the first under Sebi’s revised offer for sale (OFS) rules that allow the bidding for shares spread over two days. The floor price of Rs 122 apiece was at a 3.82 percent discount to yesterday’s closing price of Rs 126.85 on the BSE.