Determined to push through its stake sale in the current fiscal, the Department of Disinvestment (DoD) is holding hectic consultations with senior officials of state-run power generation major NTPC. The DoD has already circulated a Cabinet note for 9.50% stake dilution of NTPC, which could help the Centre to raise about Rs 13,100 crore.
"The DoD held series of meeting last week with the senior management team of NTPC to work out plans for the success of the company's stake sale," a senior government official said. The government has proposed to disinvest 9.50% paid up equity of NTPC through Offer for Sale (OFS) of shares through the stock exchanges.
The Government currently holds 84.50% stake in the Maharatna company. Post disinvestment, its stake would come down to 75%. NTPC became public with its initial public offering hitting the market in 2004. Thereafter in 2009, the government further diluted its stake in the company through Follow-on Public Offer (FPO). The power generation company had reported a net profit of Rs 9,223.73 crore in the last fiscal as against Rs 9,102.59 crore in 2010-11.
NTPC recorded a turnover of Rs 61,002.20 crore in 2011-12 as compared to Rs 54,704.55 crore in the previous fiscal. The market capitalisation of the company, incorporated in 1975, stood at Rs 1.34 lakh crore at the end of March 2012. Shares of NTPC trades at around Rs 166.30 on the BSE. The government has proposed to raise Rs 30,000 crore from disinvestment in the current fiscal.
However, it has failed to come out with any public offering in first six months of 2012-13. Last fiscal, due to volatile market conditions, the government had to postpone the sell off process in some PSUs. It raised only Rs 14,000 crore in 2011-12 against a disinvestment target of Rs 40,000 crore.
