The government's 5 per cent sale of stake in power generator NTPC witnessed a successful start on Tuesday with 86 per cent of shares reserved for institutional investors being subscribed by mid-day.
Through its offer for sale (OFS), the company is off-loading 41.23 crore shares, or 5 per cent of stake.
As per National Stock Exchange (NSE) data, institutional investors had placed bids for 28.4 crore (28,47,75,011) shares, or 86 per cent of total stake size, by mid-afternoon. The government is selling around 32.98 crore shares to institutional buyers.
In a notice to the stock exchanges on Monday, NTPC had said that more shares can be issued in case of over subscription of the initial OFS offer.
"Further, up to 5 per cent of the equity shares sold pursuant to the offer (over and above the offer shares) may be offered to eligible and willing employees of the company at a discount of up to 5 per cent of the cut-off price subsequent to completion of the offer," it said.
"The floor price for the offer shall be Rs 168 per equity share," the notice read. The sale of 5 per cent stake would fetch the government around Rs 7,000 crore.
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The OFS bidding for retail investors will take place on Wednesday.
Last week, NTPC said that it plans to seek shareholders approval to raise Rs 15,000 crore through the issue of bonds, debentures on private placement basis.
The company said in its annual report that funds raised through the issue of bonds, debentures will be used for capital expenditure, working capital and general corporate purposes.
Last month, NTPC reported a 12 per cent rise in its standalone net profit for the first quarter of 2017-18, at Rs 2,618.17 crore, up from Rs 2,338.61 crore during the corresponding period in 2016-17.
NTPC stock was trading lower at 3 p.m. on Tuesday, at Rs 168.50 a share, down Rs 4.95, or 2.80 per cent, on its previous close on the BSE.
--IANS
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