NTPC issue subscribed 12 times

The NTPC issue, which closed today, was subscribed 12 times, with qualified institutional investors alone putting in nearly $10 billion.

According to Bombay Stock Exchange data, as of 10 pm, the issue had received bids for 9.58 billion shares against the issue size of 0.8658 billion shares.

Thus, against the issue size of Rs 5,370 crore (at the upper end of the indicated price band of Rs 52-62), the issue received bids for a total amount of Rs 59,396 crore.

Merchant banking sources said the list of investors having put in bids for more than Rs 1,000 crore each includes the Citi Group, Unit Trust of India, Life Insurance Corporation, HSBC, Pictet and GMO Fund.

Others such as Temasek, Fidelity, Tempelton, Merrill Lynch, Janus and Morgan Stanley are said to have put in bids for more than Rs 100 crore each.

According to merchant banking sources, both the qualified institutional buyers and the high networth individuals are expected to have subscribed more than 15 times, each, and added that since a lot of investment has come in through the participatory note route, it is difficult to determine the largest single investor.

S Mukherji, managing director and CEO, ICICI Securities, the book running lead manager to the issue, said: "I expect more such quality issues to hit the market."

Vallabh Bhansali of Enam Financial said: "It is the India story and the regulatory structure (in the power sector) that has evoked this staggering response."

Uday S Kotak, vice-chairman and managing director, Kotak Mahindra Bank, said: "History has been made with the NTPC offer. We hope that this issue is the trigger for Indians to participate in outstanding public sector companies like NTPC."