NTPC stake sale oversubscribed on rush by investors for shares, govt to get Rs 11,500 cr
The share sale of country's largest power producer NTPC was over-subscribed 1.7 times as an offer price lower than the scrip's trading rate on stock exchanges received tremendous interest from foreign investors.
Coming within a week of the share sale of Oil India, the NTPC issue also was also lapped up by foreign investors in a big way, making the government say there is still a huge demand for PSU shares in the market.
The total demand received for the offer was 132.84 crore shares, which is 1.7 times over the 78.32 crore shares or 9.5 per cent stake on the block.
The government had fixed the floor price or the minimum offer price at Rs 145 apiece. The indicative price, which is the weighted average price of all valid bids, came in at Rs 145.91 at the close of auction.
"The government is satisfied with the response to the NTPC offer. We expect more than Rs 11,500 crore from the issue," Disinvestment Secretary Ravi Mathur said.
The total proceeds realised from disinvestment would be over Rs 21,500 crore so far this fiscal with the success of NTPC issue, helping government inch towards the Rs 30,000 crore budgeted target.
Receipts from the stake sale would also help government restrict its fiscal deficit at 5.3 per cent of GDP in the ongoing fiscal.
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