NTPC follow-on issue fully subscribed
05 Feb 2010
NTPC has received bids worth at least Rs9,850 crore ($2.1 billion) for its $1.8 billion follow-on share offer - about 1.2 times - based on the floor of Rs201 a share set by the government.
Investors bid for 490.5 million shares against the offer of 412.3 million as of 4:05 pm, when the offer closed for subscription, according to data provided by the National Stock Exchange and the Bombay Stock Exchange.
The government, which owns 89.5 per cent in NTPC's equity share capital, is selling 5 per cent stake in the company.
NTPC said the company staff and retail and high-net worth individual (HNI) investors subscribed to 25 per cent of the issue. The qualified institutional buyer (QIB) buyer portion was subscribed 2.18 times, it said.
Non-institutional and retail investors' portion remained undersubscribed till Thursday, with their portion subscribed just 0.7 times and 0.3 times, respectively.
NTPC employees will get the shares at Rs191 each, a discount of Rs10 a share to the floor price. Of the FPO, a total of 4,273,220 equity shares are reserved for employees.
