In one of the biggest offer-for-sale (OFS) in recent times, the Centre on Monday announced 5 per cent stake sale in thermal power major NTPC with a green-shoe option to retain another 5 per cent, which together could fetch the Centre about Rs 13,852 crore disinvestment revenue.
The two-day issue will be open for subscription by institutional investors on Tuesday, a senior government official said. Retail investors can bid in the OFS on Wednesday. “The NTPC shares will be offered at a floor price of Rs 168 apiece, at a discount of over 3 per cent,” the official said. On Monday, the company’s shares closed at Rs 173.35, up 2.48 per cent from the previous closing price.
The government could sell up to 82.45 crore shares if the entire 10 per cent stake sale is fully subscribed. It could be the second biggest OFS so far after 10 per cent stake sale in Coal India OFS fetched the Centre Rs 22,557.63 crore in FY15.
The government has a rolling pipeline of PSUs for OFS transactions at the opportune time. Seven more PSUs lined up including Indian Oil, PFC and NHPC, which could fetch it another Rs 24,000 crore. It plans to sell 10 per cent each in NHPC, PFC and SAIL while 3 per cent in Indian Oil, 15 per cent in Neyveli Lignite and 5 per cent in Rural Electrification.
For 2017-18, the government has set an ambitious disinvestment target of Rs 72,500 crore, 58 per cent higher than the receipt of Rs 46,247 crore in 2016-17. It plans to raise Rs 46,500 crore from disinvestment in PSUs, Rs 15,000 crore from strategic disinvestment and Rs 11,000 from listing of general insurance companies this year. Though the target is stiff, the Centre could reach the high disinvestment target via its proposed 51.11 per cent stake sale in HPCL to ONGC for about Rs 30,000 crore, a planned new diversified exchange traded fund and IPOs in nearly ten PSUs. So far this year, the Centre has garnered Rs 9,302 crore in disinvestment receipt, including Rs 4,153 crore from strategic sales from SUUTI Holdings. FE