Government To Sell Its 5 % Stake In NTPC

Government will sell its 5 per cent stake in India’s largest power producer NTPC at a floor price of Rs 122 per share to raise Rs 5,029 croreThe government, which owns almost 75% of the company, plans to sell its stake in the two-day sale filings.

Retails investors, for whom 20 per cent shares have been reserved, will get to bid on February 24. Indian government still remains well short of its Rs69,500 crore stake sale target for the year to 31 MarchThis fiscal, the government has sold shares in companies including Power Finance Corp. and Rural Electrification Corp. It has raised Rs13,340 crore, or a fifth of the aim through disinvestment in five PSUs — EIL, Indian Oil Corp, PFC, REC and Dredging Corporation. Missing the target will put pressure on the country’s finances at a time when Prime Minister Narendra Modi is seeking to increase capital spending and boost growth.
NTPC is the first company to hit the markets under the revised offer for sale (OFS) guidelines of market regulator SEBI. The OFS route has now been spread over two days. The allocation shall be at or above the floor price on price priority basis at multiple clearing prices. However, allocation to retail investors, who have the option to bid at the cut off price, can be below the floor price on account of retail discount offered. A 5 per cent additional discount would be offered to retail investors, which are those who bid for shares worth not more than Rs 2 lakh.
Extra Info : 
NTPC Chairman & MD : Gurudeep Singh 
NTPC Headquarter : New Delhi 
NTPC : A Maharatna Company

So lets discuss some questions related to this article which can be asked in the upcoming exams :
1. Name the company in which Indian Government will sell its 5 % stake ?
2. Expand the term OFS.
3. NTPC is related to which segment of the industry ?

Courtesy : Times Of India

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