Small BusinessNTPC files for FPO
Country"s largest power producer NTPC today filed the draft prospectus for its follow-on public offer with market regulator Sebi.
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The government is divesting 5 per cent stake in NTPC through FPO, which is expected to fetch about Rs 11,000 crore going by current market valuations.
"I was told by my officials in the morning that NTPC has filed the DRHP (Draft Red Herring Prospectus) with SEBI," Power Secretary H S Brahma told reporters here.
Being a fast-track issue, the offer may not take more than 25 days after the draft prospectus is filed. Before this, only SBI and Hindalco offers were on fast-track.
SEBI takes shorter time to give permission to companies for follow-on offers if they qualify certain norms.
The Cabinet Committee on Economic Affairs had last October given its approval for sale of five per cent Government stake in NTPC.
After the five per cent stake dilution, the Government"s holding in the power utility will come down to 84.5 per cent from the current 89.5 per cent.
The Government has already appointed ICICI Securities, JP Morgan, Citi, and Kotak as investment bankers for the issue. The proceeds from the FPO would go to the Investment Fund that finances social sector schemes.
After NTPC, three more companies, including Rural Electrification Corporation (REC), are slated to hit the market before the Budget. Mining giant NMDC"s offer will come around March 10 while that of Satluj Jal Vidyut Nigam towards the end of March.