The government will sell 5 per cent stake in state-run NTPC on Tuesday to raise around Rs. 5,000 crore. The floor price of the share sale has been fixed at Rs. 122 per share.
A successful share sale of NTPC – India’s largest energy conglomerate – will take overall divestment to a little over Rs. 18,000 crore in the current fiscal year. That’s way lower than the target of Rs. 69,500 crore the government had set in the budget.
The big miss on disinvestment has been blamed on global volatility in capital and currency markets. The finance ministry now hopes to raise Rs. 30,000 crore through disinvestment in the current fiscal year.
So far, the government has been able to garner about Rs. 13,340 crore by selling stakes in Rural Electrification Corp. (Rs.1,600 crore), Power Finance Corp. (Rs.1,670 crore), Dredging Corp. of India (Rs.53 crore), Indian Oil Corp. (Rs.9,370 crore), and Engineers India (Rs. 640 crore).
NTPC shares closed 2.05 per cent lower at Rs. 126.85 on the Bombay Stock Exchange on Monday. In contrast, the BSE Sensex closed 0.34 per cent higher at 23,789.