NTPC slips amid OFS by Govt

NTPC fell 3.14% to Rs 167.90 at 11:13 IST on BSE as the government's two-day offer for sale for offloading a total of 5% stake in the company kicked off today, 29 August 2017.

Meanwhile, the S&P BSE Sensex was down 270.84 points, or 0.85% to 31,479.98.

On the BSE, 3.35 lakh shares were traded in the counter so far, compared with average daily volumes of 6.98 lakh shares in the past one quarter. The stock had hit a high of Rs 168.45 and a low of Rs 166 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 28 August 2017, rising 5.83% compared with 1.73% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 7.47% as against Sensex's 1.90% rise. The scrip had underperformed the market in past one year, rising 8.75% as against Sensex's 13.79% rise.

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

The government offered to sell 5% stake in NTPC at a floor price of Rs 168 per share through a two-day offer-for-sale (OFS) beginning today, 29 August 2017, with an option to issue a similar number of shares in case of over subscription. The sale of 41.23 crore shares, or 5% equity, would fetch about Rs 7000 crore to the exchequer. The two-day OFS would open for institutional investors today, 29 August 2017, and retail investors would get to bid tomorrow, 30 August 2017. The offer shall take place during trading hours on a separate window of the stock exchanges on T day ie 29 August 2017 commencing at 09:15 IST and shall close on the same date at 15:30 IST. The announcement was made after market hours yesterday, 28 August 2017.

On the first day of the bidding for OFS today, 29 August 2017, as at 11:05 IST, bids were received for 26.55 crore shares from the non-retail investors, representing a subscription of 80.52%.

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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