JOIN USGovt to sell NTPC stake on Feb 7
Riding on the crest of its successful stake sale of Oil India Ltd last week, the government on Tuesday announced further offloading of its shares in power producer NTPC, which will take place on February 7.
The government is expected to raise Rs 12,000 crore from selling its stake in the power behemoth and help reduce its fiscal deficit to 5.3 per cent in 2012-13 from 5.8 per cent last year.
The Centre, which owns 84.5 per cent stake in NTPC, plans to sell a 9.5 per cent through offer for sale route. The floor price for the auction will be announced on Wednesday. The Empowered Group of Ministers (EGoM) on disinvestment, chaired by Finance Minister P Chidambaram, approved the sale of 9.5 per cent stake in power behemoth Tuesday.
The government has raised over Rs 10,000 crore though PSU stake sale so far this fiscal, which includes OIL, NMDC, HCL and NBC. If it is able to realise the expected Rs 12,000 crore from NTPC, the government will be short of only Rs 8,000 in realising the budgeted Rs 30,000 crore from the stake sale in PSU companies this fiscal.
Earlier this month, it picked Citigroup, Deutsche Bank , Goldman Sachs, Kotak Mahindra Capital, Morgan Stanley, and SBI Capital Markets to run the share sale.
A marketing roadshow for NTPC was also held in the last week of January.