The Cabinet had earlier approved disinvestment of 10 per cent stake in NTPC, of which 6.75 per cent was sold in August last year.
"NTPC offer for sale (OFS) is being planned next month. At least 3.25 per cent would be put on the block, with a green shoe option, which will be decided based on investor demand," an official told PTI.
At the current market price, sale of 3.25 per cent stake in NTPC will fetch about Rs 3,800 crore to the exchequer.
"The merchant bankers are doing domestic roadshows for NTPC. Based on investor demand, the quantum of stake sale will be finalised," the official said.
The government currently holds 61.77 per cent stake in NTPC.
Through sale of 6.75 per cent in NTPC, the government had last year raised over Rs 9,200 crore.
Shares of NTPC were trading at Rs 142.25, down 0.87 per cent in afternoon trade on BSE.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)