NTPC slips after dull retail response to OFS

NTPC fell 0.24% to Rs 167.60 at 12:11 IST on BSE after dull response from retail investors in the company's two-day offer for sale.

Meanwhile, the S&P BSE Sensex was down 44.33 points, or 0.14% to 31,602.13.

On the BSE, 73.51 lakh shares were traded in the counter so far, compared with average daily volumes of 6.97 lakh shares in the past one quarter. The stock had hit a high of Rs 167.85 and a low of Rs 163.70 so far during the day. The stock hit a 52-week high of Rs 179 on 7 August 2017. The stock hit a 52-week low of Rs 143.45 on 13 October 2016.

The stock had outperformed the market over the past one month till 30 August 2017, rising 1.88% compared with 2.85% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 4.87% as against Sensex's 1.63% rise. The scrip had underperformed the market in past one year, rising 5.49% as against Sensex's 11.23% rise.

The large-cap company has equity capital of Rs 8245.46 crore. Face value per share is Rs 10.

The government received bids for about 7% stake in NTPC, which will fetch over Rs 9000 crore to the exchequer. At the end of the two-day offer for sale (OFS) yesterday, 30 August 2017, the government retained oversubscription it had received from institutional investors after retail investors bid for only 73% of the quota allocated for them.

The government had planned to sell over 41.22 crore shares, or 5% holding, through the two-day OFS, with an option to retain a similar portion in case of oversubscription. On the opening day on Tuesday, 29 August 2017, institutional (non-retail) investors bid for 46.35 crore shares against 32.98 crore shares offered to them, according to stock exchange data.

Yesterday, 30 August 2017, retail investors bid for 8.45 crore shares against 11.58 crore shares on offer. The government decided to retain oversubscription, and after adjustments a total of about 7% stake was sold in the OFS. The shares were offered at a floor price of Rs 168 each.

The Government of India (GoI) held 69.74% stake in NTPC as per the shareholding pattern as on 30 June 2017.

NTPC's net profit rose 12% to Rs 2618.17 crore on 4.3% rise in net sales to Rs 19879.32 crore in Q1 June 2017 over Q1 June 2016.

NTPC is India's largest energy conglomerate with presence in the entire value chain of the power generation business.

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