a large order, exceeding Rs 1,000 crore. “More bids came in towards the end of the day, after 2.30pm, and the orders were typically around $50-100 million,” Mathur added.
Most brokerages and institutions FE had polled on Wednesday recommended subscribing to the issue, citing cheaper valuations, power sector reforms, the company’s immunity to pricing and coal linkages with Coal India that would set the company in a favourable position.
Apart from NTPC, the current financial year has seen the government diluting its stake in Oil India (Rs 3,100 crore), Hindustan Copper (Rs 800 crore), NMDC (Rs 6,000 crore) and NBCC (Rs 125 crore) through the OFS route. The government also plans to dilute its stake in SAIL, Nalco, Neyveli Lignite and Rashtriya Chemicals and Fertilizers but a final call on pricing and timelines is yet to be taken. While the divestment secretary refrained from divulging names of forthcoming PSU stake sales, he confirmed that the issues would be of a far smaller size than NTPC’s.
Mathur said the success of the Oil India and NTPC issues was an indication of the appetite in the market but said the next few issues would be much smaller, including those of MMTC and NALCO.
The OFS route has become the most preferred one for companies looking to dilute the promoter’s stake. The transaction is completed within market hours in a single day in a transparent manner. It is also one of the permitted routes for promoters who want to bring down their holding to comply with the minimum public shareholding norms.