FILE PHOTO - A worker levels a salt pan near electricity pylons in Mumbai, India, January 16, 2017. REUTERS/Shailesh Andrade/File Photo
MUMBAI: India’s government said it will sell a 5% stake in top power producer NTPC Ltd through a stock market auction, with a greenshoe option to sell another 5% in a deal that could raise up to US$2.2bil (RM9.4bil).
The share sale, which will take place this week, is one of a number of partial stake sales planned to help New Delhi meet its fiscal deficit target of 3.2% of gross domestic product.
The government, which owns nearly 70% of NTPC, said it has set a floor price of 168 rupees (RM11.23) apiece for the auction on Tuesday and Wednesday.
In the base offer to sell a 5% stake, it will sell up to 412.27 million shares and an equal number of shares as part of the oversubscription option, according to a regulatory filing.
The government aims to raise 725 billion rupees (RM48.4bil) through stake sales during the year to March 2018, and has raised about 93 billion rupees from such divestments so far.
The NTPC sale will be open for funds on Tuesday, while retail investors will be able to bid on Wednesday. Retail investors will receive shares at a 5% discount to the cut-off price. - Reuters
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