The follow-on offer of NTPC, which is currently the country’s largest power producer, is largely expected to open on February 03. The firm’s FPO, which will bring an estimated amount of Rs.
11,000 crore to the Government, has been eagerly awaited for quite some time now.
“NTPC’s FPO would open on February 3 and close on February 5”, a Senior Finance Ministry Official said.
On Tuesday, the company had filed the draft prospectus for its FPO with Securities and Exchange Board of India, the market regulator. Through the upcoming FPO, the Government is divesting a
5% stake in NPTC, a sale which was awarded approval by the Cabinet Committee on Economic Affairs in October 2009.
After selling off 5%, the Government would hold an 84.5% stake in the power utility.
Services of ICICI Securities, JP Morgan, Citi and Kotak have been employed for the FPO, and funds raised from the issue would be put into Investment Fund, the financer of the social sector schemes.