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Rediff.com  » Business » Overseas roadshows for NTPC's Rs 13,000-cr share sale

Overseas roadshows for NTPC's Rs 13,000-cr share sale

January 28, 2013 20:18 IST

Government has started roadshows in five countries, including the US, the UK and Japan, for promoting the proposed Rs 13,000-crore (Rs 130 billion) stake sale in power producer NTPC.

"The roadshows are on in the US, the UK, Japan, Singapore and Hong Kong and one of the teams is expected back in a day or two," a top Power Ministry official told PTI.

Asked about the date of the offer, the official said that Department of Divestment will decide that. This was a proposal by the Department of Divestment, Ministry of Finance.

The government hopes to garner close to Rs 13,000 crore from this offer. It has set a target of raising Rs 30,000 crore (Rs 300 billion) in 2012-13 through stake sale in PSUs out of which it has already netted Rs 6,900 crore (Rs 69 billion) so far.

In November last year, the government approved 9.5 per cent stake sale in NTPC. It currently holds 84.5 per cent stake in the company, which would come down to 75 per cent post the offer. NTPC will not raise any fresh equity through this offer.

Last week, the government returned three coal blocks to NTPC, which were taken back due to delay in developmental work. This move is aimed at boosting the valuation of the company for the share sale.

The three coal blocks - Chatti-Bariatu, Kerandari and Chatti-Bariatu (South), all in Jharkhand - were forfeited in 2011.

NTPC reported nearly 22 per cent jump in its net profit at Rs 2,596.76 crore (Rs 25.96 billion) in the third quarter ended December, 2012 as against Rs 2,130.39 crore (Rs 21.30 billion) in the same period a year ago.

At present, NTPC has a generation capacity of 39,674 MW.

Shares of the company today closed at Rs 157.75, down 0.97 per cent on the BSE.

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