Government looks to raise Rs12,000 crore through sale of 9.5 % in NTPC
27 Nov 2012
The Government of India has kicked off the process of divesting a 9.5 per cent equity in state-run power utility, National Thermal Power Corporation (NTPC), to raise an expected Rs12,000 crore.
The government today issued tenders inviting bids from merchant bankers and brokers to manage its divestment of the 9.5 per cent equity in NTPC.
"Proposals are invited from reputed merchant bankers with experience and expertise in public offerings or OFS in capital markets to act as merchant bankers and to advise the government in the process," the department of disinvestment (DoD) said in a public notice.
The government plans to sell the stake through an auction on stock exchanges.
The NTPC stock was trading at Rs158.55 on the Bombay Stock Exchange (down 0.41 per cent from Monday's close). At the current market price, the sale of a 9.5 per cent stake in NTPC could fetch around Rs12,400 crore to the exchequer.
The disinvestment department has asked interested merchant bankers and brokers top submit their application by 14 December.