Centre launches process of offloading 9.5% NTPC equity
28 Nov 2012 5:52 AM IST
The government on Tuesday started the process of disinvestment in NTPC by inviting bids from merchant bankers for 9.5 per cent stake sale in the power major, which may fetch the exchequer over Rs 12,000 crore.
'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,' the Department of Disinvestment (DoD) said in a public notice. The merchant bankers are required to submit their application by 14 December. Last week the Cabinet had approved sale of 9.5 per cent stake in the country's largest power producer NTPC through the offer for sale route (OFS) through stock exchanges that could fetch over Rs 12,000 crore.The government currently holds 84.50 per cent stake in NTPC and post disinvestment Government's holding would come down to 75 per cent.The paid up equity capital of the company, as on 31 March 2012, is Rs 8,245.46 crore. The disinvestment would also help NTPC to comply with the minimum public shareholding norms.
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.
'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,' the Department of Disinvestment (DoD) said in a public notice. The merchant bankers are required to submit their application by 14 December. Last week the Cabinet had approved sale of 9.5 per cent stake in the country's largest power producer NTPC through the offer for sale route (OFS) through stock exchanges that could fetch over Rs 12,000 crore.The government currently holds 84.50 per cent stake in NTPC and post disinvestment Government's holding would come down to 75 per cent.The paid up equity capital of the company, as on 31 March 2012, is Rs 8,245.46 crore. The disinvestment would also help NTPC to comply with the minimum public shareholding norms.
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.
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