National Thermal Power Corporation, the largest thermal power producer of the country, is all set to file a Draft Red Herring Prospectus (DHRP) with the Security and Exchange Board of India (SEBI) on Monday.
The move, according to a senior official in the Union Finance Ministry, would have a way for its proposed Follow-on Public Offer (FPO) in the first week of February.
SEBI is expected to clear DRHP through fast track route for allowing the FPO on scheduled time. The companies need not get SEBI’s nod for their public issues once their fast track issue has been cleared.
They can sell stocks to FIIs, financial institutes or private individuals of high net worth through auctioning route. Shares can be issued to retail investors at the floor price.
Government has already approved the offers of four public sector undertakings namely Rural Electrification Corporation, NMDC, REC, and DRHP. The firms hope to raise a collective sum of Rs 30,000 crore from the market.
NTPC would see 5 percent stake offloading in NTPC, raising around Rs 8,200-11,000 crore through the stake sale.
