NTPC follow-on issue subscribed over 60 per cent within 2 hours

03 Feb 2010

National Thermal Power Corporation's follow-on public offer of 412.2 million shares was subscribed 61 per cent in the first two hours of its opening today. (See: NTPC FPO to be priced at Rs201 per share)  

NTPC, India's largest power generation company, received bids for over 250 million shares in the first two hours of the opening of its FPO, according to National Stock Exchange data.

The empowered group of ministers (EGoM) has fixed the floor price for the FPO at Rs201 per equity share. The EGoM also decided to offer a discount of Rs10 per share to eligible employees submitting bids under the employee reservation portion. The eligible employees will be offered equity shares at a price of Rs191 per share.

Of the FPO, a total of 4.273 million equity shares are reserved for NTPC employees.

The floor price was arrived at through an alternative book building process under part D of Schedule XI of the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2009, NTPC said in a website release.

The minimum bid lot has been fixed at 28 equity shares and in multiples of 28 equity shares thereafter.