August 30, 2009 1:49:00 pm
With improvement in the stock market,the Government is looking at divesting another 10 per cent stake in the largest power generation company NTPC,which may also raise fresh equity to part finance its expansion programme.
According to sources close to the development,NTPC is likely to hit the capital market with a follow-on public offer to raise nearly Rs 6,000 crore early next fiscal.
The Government would divest 10 per cent of its stake and 10 per cent would be the fresh equity offered by NTPC. After the follow-on public offer (FPO) the government’s holding in the company would come down to nearly 80 per cent from the current 95 per cent.
NTPC has sent the proposal to the Power Ministry from where it will go to the Cabinet for approval. Following this,the company will file the draft prospectus with the market regulator SEBI,officials said,adding that the entire process would take about 6-8 months.
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Going by this,the FPO is not possible this fiscal,but may be early next year,a company official said.
However,he refused to divulge any further details.
NTPC has earmarked a capital expenditure of Rs 60,000 crore for the current plan period.
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