However, following broader market trends, NTPC scrip slipped below the floor price to Rs 119.95 apiece, down 3.19 per cent over previous close on the BSE.
The government is selling over 41.22 crore shares or 5 per cent in NTPC at a floor price of Rs 122 apiece. Of this, over 32.98 crore share were offered to institutional investors yesterday.
Bidding for the remaining over 8.24 crore shares began today. According to NSE data, subscription for over 13.50 lakh shares came in by 1035 hours.
At a floor price of Rs 122 apiece, sale of over 41.22 crore shares would fetch Rs 5,030 crore to the exchequer.
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Institutional investors, including FIIs and insurance banks, have given a thumping start to the NTPC stake sale yesterday with the portion offered to them getting over-subscribed by 1.8 times. Total bids worth Rs 7,287 crore came in from these buyers.
Bidding would go on till 1530 hours today and is open only for retail investors.
After the sale, the government will continue to hold a majority stake of 69.96 per cent in NTPC.
SBICAP Securities, ICICI Securities, Edelweiss Securities and Deutsche Equities are acting as merchant bankers for the share sale.
The Cabinet in May had approved the 5 per cent stake sale in NTPC. The government holds 74.96 per cent in the firm. It had last sold stake in NTPC in February 2013.
So far this fiscal, government has raised over Rs 13,300 crore through disinvestment in five PSUs - EIL, Indian Oil Corp, PFC, REC and Dredging Corporation. This is against a target of Rs 69,500 crore for 2015-16.