Govt clears 9.5% stake sale in NTPC
“The Cabinet Committee on Economic Affairs has approved 9.5% paid-up equity capital ( about 78.33 crore shares) in NTPC out of government's shareholding of 84.50%, a proposal by Department of Disinvestment, ministry of finance," sources said.
At the current market price, the stake sale is likely to fetch R13,000 crore for the exchequer. However, it has failed to come out with any public offering in over seven months of 2012-13.
The government has set a disinvestment target of R30,000 crore for the current fiscal. Post-disinvestment, the government stake in NTPC will come down to 75%, which would also help the PSU to comply with the minimum public shareholding norms.
Meanwhile, the government has decided to re-allocate three coal blocks that were taken away from NTPC for delay in the development of those mines, sources said.
With the re-allocation of coal blocks, the overall valuation of NTPC is expected to go up. This, in turn, will help the government to get higher returns from the proposed share sale.
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 R9,223.73 crore in the last fiscal against R9,102.59 crore in the 2010-11. The market capitalisation of the company stood at 1,34,194.93 crore at the end of March 2012. Shares
Be the first to comment.