The government is likely to sell 9.5 per cent of its stake in the largest power generator, NTPC, on January 15, which could fetch the exchequer Rs 12,000 crore at the current market price.
If stake sale becomes successful, the government would be able to realise more than half of the targeted Rs 30,000 crore from disinvestment in the current financial year. The government has already raised Rs 800 crore. It is selling 10 per cent stake in iron ore miner NMDC tomorrow, eyeing 5,900 crore.
NTPC shares on Tuesday closed at Rs 154.30 each, down 1.66 per cent on the BSE. At the current price, the government would be able to raise Rs 12,085 crore.
“NTPC is next on the government’s divestment agenda. The issue is likely to hit the market January 15,” a source in the finance ministry said.
The government proposes to divest 9.5 per cent stake amounting to 783.2 million shares of face value of Rs 10 in NTPC via offer for sale (auction) route, sources said.
The government holds 84.5 per cent stake in the Maharatna company. Post-disinvestment, the stake would come down to 75 per cent.
NTPC became public with an initial public offer in 2004. In 2009, the government further diluted its stake through a follow-on public offer.
The power generation company had reported a net profit of Rs 9,223.73 crore in the last financial year as against Rs 9,102.59 crore in 2010-11.
The market capitalisation of the company stood at 1,34,194.93 crore at the end of March 2012. As part of the disinvestment process, the government has lined up around a dozen companies for stake sale to realise the target for the current financial year.
Last month, the government initiated disinvestment process by selling 5.58 per cent stake in Hindustan Copper for about Rs 808 crore at an average price of Rs 156.56 apiece.
