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Rediff News  All News  » Business » Govt may clear 9.5 pc stake sale in NTPC soon

Govt may clear 9.5 pc stake sale in NTPC soon

November 20, 2012 19:31 IST

The government is likely to approve 9.5 per cent stake sale in state-run NTPC this Thursday.

"Cabinet may approve 9.5 per cent paid up equity capital in NTPC out of government's shareholding of 84.50 per cent, a proposal by Department of Disinvestment, Ministry of Finance," sources said.

This move is aimed at meeting the government's disinvestment target of Rs 30,000 crore (Rs 300 billion) in the current fiscal.

The government would soon clear sale of about 78.33 crore (7.83 million) shares resulting in 9.5 per cent stake dilution in NTPC.

The government currently holds 84.5 per cent stake in the Maharatna company. Post disinvestment, the government stake would come down to 75

per cent.

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 Rs 9,223.73 crore (Rs 92.23 billion) in the last fiscal as against Rs 9,102.59 crore (Rs 91.02 billion) in the 2010-11.

The market capitalisation of the company stood at 1,34,194.93 crore (1.34 trillion) at the end of March 2012.

Shares of NTPC closed at Rs 167.80, down 0.15 per cent at the BSE.

The government has proposed to raise Rs 30,000 crore from disinvestment in the current fiscal. However, it has failed to come out with any public offering in over seven months of 2012-13.

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