NTPC defers IPO over TCS float

National Thermal Power Corporation has deferred its proposed initial public offer and is now expected to launch the issue in the second half of September. 
 
Senior company executives told Business Standard that the decision was taken in wake of the TCS public issue hitting the market on July 29th. The company had earlier planned to launch the issue in the first half of August. 
 
"The exact timing for the IPO will depend on market conditions but we are targeting the second half of September," a company executive said adding that the roadshows will begin in early September. 
 
So far the government has not formally informed the company of its intention to divest 5.2 per cent shares in NTPC through the IPO, executives said. 
 
The central power utility has already obtained Sebi's approval to issue fresh shares of 432.9 million, amounting to 5.2 per cent equity, through an initial public offer. NTPC is expected to file a fresh prospectus before the markets regulator to enable the government to dilute an additional 5.25 per cent stake in the company. 
 
NPTC shares, which have a face value of Rs 10, are expected to be priced between Rs 30 and Rs 60 and the company is expected to raise a minimum around Rs 2,500 crore (Rs 25 billion) through the sale of 10.5

per cent stake. 
 
The book running lead managers to the issue are ICICI Securities, Enam Financial Consultants and Kotak Mahindra Capital Company. 
 
The company plans to offer a maximum 50 per cent shares on offer to qualified institutional buyers, while the rest would be allotted to high networth individuals and retail in equal proportion of 25 per cent each. 
 
Sources said that NTPC was in favour of increasing the quota for retail investors. Around 41.3 million shares are being offered to the public while the balance 20.6 million are being offered to employees, as per the draft prospectus filed with Sebi. 
 
Finance Minister P Chidambaram had announced in the Budget that the government would piggy back the NTPC IPO to off-load 5.2 per cent shares. In addition to NTPC, the government is planning to sell its stake in Maruti Udyog and Balco, in which Sterlite has already made a call option.