The government has initiated the process for sale of further 9.50 per cent in state-run power generation major NTPC to meet its disinvestment target of Rs 30,000 crore in the current fiscal.
The Department of Disinvestment has proposed stake sale of NTPC.
The government would soon clear sale of about 78.33 crore shares resulting in 9.50 per cent stake dilution in the NTPC Ltd,official sources said.
With the proposed disinvestment,the government is expected to mop up about Rs 13,100 crore,sources said.
The government proposed to disinvest 9.50 per cent paid up equity of NTPC through Offer for Sale (OFS) of shares through the stock exchanges,sources added.
The Government of India currently holds 84.50 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 in the last fiscal as against Rs 9,102.59 crore in the 2010-11.
NTPC recorded a turnover of Rs 61,002.20 crore in 2011-12 as compared to Rs 54,704.55 crore in the previous fiscal.
The market capitalisation of the company incorporated in 1975 stood at 1,34,194.93 crore at the end of March 2012.
Shares of NTPC was trading at Rs 164.30,down 1.29 per cent at the BSE in the afternoon session.
Last week,the government decided to sell its stake in four PSUs Hindustan Copper,Oil India,MMTC and Nalco which may fetch around Rs 15,000 crore.
The Cabinet Committee on Economic Affairs (CCEA) cleared the proposal of 12.15 per cent stake sale of Nalco and 9.33 per cent in MMTC through Offer for Sale (OFS) route.
Besides,10 per cent stake sale in OIL India and 9.59 per cent disinvestment in Hindustan Copper Ltd (HCL).
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 first five months of 2012-13.
Last fiscal,due to volatile market conditions,the government had to postpone the sell off process in some PSUs. It raised only Rs 14,000 crore in 2011-12 against a target of Rs 40,000 crore.