NTPC slips 4% as govt to sell up to 10% stake via OFS

Shares of NTPC fell over 4% on the BSE on Tuesday after the government notified that it will sell up to 10% stake in the country's largest power producer to raise about Rs 7,000 crore.

The stock slipped as much as 4.23% to hit its intraday low of Rs 166 on the BSE. 

The share sale through an offer for sale (OFS) will happen over two days beginning today. The Centre has fixed the base price for the OFS at Rs 168 per share, close to a 3% discount to Monday’s close. Retail investors will get a special discount of 5% on the allotment price.

The offer for sale (OFS) will have a core component of 412 million shares (5% stake), with a greenshoe option to sell another 5%. CLICK HERE FOR FULL REPORT

The government currently owns a 69.7 per cent stake in the company. After the issue, the stake could come down to 59.7 per cent. NTPC is the fourth-largest public sector undertaking (PSU) in terms of market capitalisation, after Oil and Natural Gas Corporation, State Bank of India, and Coal India. The market capitalisation of the company is nearly Rs 1.43 lakh crore.