Govt to raise 12K Crores by liquidating 9.5% Stake in NTPC

Indian Government will raise Rs 12,000 Crores by  divesting its 9.5 percent stake in power giant NTPC.

“The EGoM (Empowered Group of Ministers) has approved 9.5 percent stake sale in NTPC,” Disinvestment Secretary Ravi Mathur told reporters on Tuesday.

The floor, or minimum, share price for the NTPC (National Thermal Power Corporation) sale via the offer for sale (OFS) route will be notified Wednesday, he added.

Asked about the expectations from the sale, Mathur said, “It would be as planned around Rs. 12,000 crore”.

The government plans to sell over 78.32 crore shares or 9.5 percent stake. It currently holds 84.50 percent stake in NTPC.

The government last month appointed merchant bankers, including Citigroup, SBI Capital Market and Morgan Stanley, for managing the NTPC disinvestment.

NTPC shares closed at Rs.155.60, up 0.16 percent from its previous Rs.155.35 on the BSE. At current market prices, the stake sale could fetch over Rs.12,100 crore.

The government has recently completed 10 percent stake sale of Oil India (OIL), raising over Rs.3,141 crore. It has raised over Rs.10,000 crore though stakes sales in public undertakings so far in this fiscal year.