NTPC FPO to open on Feb 3

State-run power major National Thermal Power Corporation (NTPC) today said its follow-on public offer (FPO), through which the government plans to divest 5 per cent stake, would open on February 3.

The FPO of the country's largest power producer in which the government holds 89.5 per cent stake would close on February 5, a company statement said.

The floor price and minimum bid lot for the offer will be decided at least one day prior to the opening of the offer.

At current market price, NTPC public offer is valued at Rs 9,525.57 crore. Shares of NTPC today closed at Rs 231.05 on the Bombay Stock Exchange, a gain of 0.59 per cent over its previous close.

NTPC plans to enter the capital market with an issue size of 41.22 crore equity shares of Rs 10 each at a price to be determined through book-building process. Of the FPO, a total of 42.73 lakh shares have been reserved for NTPC employees.

The company has filed the Draft Red Herring Prospectus with market regulator Sebi for the public issue.

After the 5 per cent stake dilution, the government's holding in the power utility will come down to 84.5 per cent. In October last year, the Cabinet Committee on Economic Affairs had approved the stake sale proposal.