NTPC follow-on offer to hit market tomorrow

The country's largest power producer NTPC's follow-on public offer (FPO) to raise about Rs 8,500 crore opens tomorrow and will be closed on Friday.

The Empowered Group of Ministers (EGoM), in its meeting on February 1, has decided the floor price of the FPO at Rs 201 per equity share.

The government is divesting 5 per cent stake in NTPC through this FPO.

After the 5 per cent stake dilution, the government's holding in the power utility will come down to 84.5 per cent from the current 89.5 per cent.

The Cabinet Committee on Economic Affairs (CCEA) had in October 2009 approved sale of 5 per cent stake of the government in NTPC.

The government has already appointed ICICI Securities, JP Morgan, Citi and Kotak as investment bankers for the issue. The proceeds from the FPO would go to the Investment Fund that finances social sector schemes.

After NTPC, Rural Electrification Corp is also expected to hit the market before the Budget. Mining giant NMDC's offer will come around March 10 while that of Satluj Jal Vidyut Nigam towards the end of March.