Divestment in NTPC along with IPO

by khalid on 30/08/2009 · 0 comments


With improvement in the stock market, the Government is looking at divesting 10 per cent stake in the largest power generation company NTPC, which may also raise fresh equity to finance its expansion programme.

Government is planning to divest 10 per cent of its stake from the largest power generator NTPC. As there is a good improvement in stock market, the company itself considering a fresh equity offer to public to part finance its expansion programme. NTPC is likely to hit the capital market with a follow-on public offer ( FPO ) to raise nearly Rs 11000 crore early next fiscal.

Currently Government have 95 per cent stake in NTPC and after this proposed divestment it would come down to approximately 90 per cent.

NTPC has sent the proposal to the Power Ministry from where it will go to the Cabinet for approval. Following this, the company will file the draft prospectus with SEBI and this entire process would take about 6-8 months. And this is the reason that FPO of NTPC will hit the market next fiscal.

Related Posts Plugin for WordPress, Blogger...

Leave a Comment

Previous post:

Next post: