The government's 5 per cent stake sale offer in NTPC was lapped up by institutional investors who over-subscribed the portion reserved for them by putting in bids worth nearly Rs 7,800 crore.
On the first day of the offer for sale (OFS), bids for over 46.35 crore shares, or 1.41 times the 32.98 crore shares available, came in from institutional buyers.
At the floor price of Rs 168 a piece, the bid are worth Rs 7,790 crore at the close of market hours.
Bidding for retail investors, who will be offered 5 per cent discount over the floor price, will open tomorrow.
The government is selling over 41.22 crore shares, or 5 per cent holding, through the two-day OFS, with an option to retain a similar portion in case of over-subscription.
Shares of NTPC closed at Rs 168.50, down 2.80 per cent over previous close on the BSE.
The government has so far this fiscal raised over Rs 8,800 crore through disinvestment in six companies, including selling stake in L&T through Specified Undertaking of Unit Trust of India (SUUTI), and one share buyback.
This is against Rs 72,500 crore targeted to be raised in 2017-18 through stake sale in PSUs.
The total includes Rs 46,500 crore from minority stake sale, Rs 15,000 crore from strategic disinvestment and Rs 11,000 crore from listing of PSU insurance companies.
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