NTPC trades almost flat

NTPC was down 0.03% to Rs 168.45 at 14:51 IST on BSE amid the ongoing offer for sale of stake by the government.

Meanwhile, the S&P BSE Sensex was up 245.29 points, or 0.78% to 31,633.68.

On the BSE, 5.44 lakh shares were traded in the counter so far, compared with average daily volumes of 7.01 lakh shares in the past one quarter. The stock had hit a high of Rs 171.40 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 29 August 2017, rising 2.68% compared with 3.46% decline in the Sensex. The scrip had underperformed the market in past one quarter, rising 5.28% as against Sensex's 0.78% rise. The scrip had underperformed the market in past one year, rising 4.14% as against Sensex's 10.74% 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) which began yesterday, 29 August 2017, with an option to issue a similar number of shares in case of oversubscription. The two-day OFS opened for institutional investors yesterday, 29 August 2017, and retail investors got to bid today, 30 August 2017. Retail investors will be allocated offer shares at a discount of 5% to the cut off price.

As per the notification issued after market hours yesterday, 29 August 2017, the government exercised the oversubscription option to the extent of 16.71 crore equity shares, or 2.03% equity, in addition to 41.22 crore equity shares, or 5% equity, forming part of the base offer size. Accordingly the total offer size (which is the aggregate of the base offer size and the oversubscription option, to the extent exercised) is 57.93 crore equity shares of the company of Rs 10 each, representing 7.03% equity of the total paid up equity share capital of the company in the aggregate.

Consequently, 11.58 crore shares are available as part of the OFS today, 30 August 2017 for subscription by the retail investors.

On the second day of the bidding for OFS today, 30 August 2017, as at 14:35 IST, bids were received for 4.32 crore shares from the retail investors, representing a subscription of 37.30%. The OFS received good response from non-retail investors' category. Non-retail category was subscribed 100% on the first day of bidding yesterday, 29 August 2017 at an indicative price of Rs 168.02.

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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