Through its offer for sale (OFS), the company is off-loading 41.23 crore shares, or 5 per cent of stake.
As per National Stock Exchange (NSE) data, institutional investors had placed bids for 28.4 crore (28,47,75,011) shares, or 86 per cent of total stake size, by mid-afternoon. The government is selling around 32.98 crore shares to institutional buyers.
In a notice to the stock exchanges on Monday, NTPC had said that more shares can be issued in case of over subscription of the initial OFS offer.
"Further, up to 5 per cent of the equity shares sold pursuant to the offer (over and above the offer shares) may be offered to eligible and willing employees of the company at a discount of up to 5 per cent of the cut-off price subsequent to completion of the offer," it said.
"The floor price for the offer shall be Rs 168 per equity share," the notice read. The sale of 5 per cent stake would fetch the government around Rs 7,000 crore.
The OFS bidding for retail investors will take place on Wednesday.
Last week, NTPC said that it plans to seek shareholders approval to raise Rs 15,000 crore through the issue of bonds, debentures on private placement basis.
The company said in its annual report that funds raised through the issue of bonds, debentures will be used for capital expenditure, working capital and general corporate purposes.
Last month, NTPC reported a 12 per cent rise in its standalone net profit for the first quarter of 2017-18, at Rs 2,618.17 crore, up from Rs 2,338.61 crore during the corresponding period in 2016-17.
NTPC stock was trading lower at 3 p.m. on Tuesday, at Rs 168.50 a share, down Rs 4.95, or 2.80 per cent, on its previous close on the BSE.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.