State-run NTPC Ltd on Wednesday announced it has offered 2.74 crore equity shares to its employees at a discounted price of Rs 159.60 per share.
“… the government of India has offered 2,74,02,498 equity shares of Rs 10 each to the eligible employees of NTPC at discounted price of Rs 159.60 per share,” India’s largest power generator said in a stock exchange filing.
The offer for sale (OFS) of shares will remain open from September 11-13, the NTPC said.
According to the offer document, the company employees would be eligible to apply for shares of only up to Rs 2 lakh each.
The discounted price was arrived at after factoring in a 5 per cent discount to the cut-off price of Rs 168, discovered through the government’s 5 per cent sale of stake in NTPC last week.
Last Wednesday, NTPC’s OFS for retail investors was oversubscribed 1.03 times on the second day of the sale as investors bid for 8.45 crore shares, over the 8.24 crore shares reserved for them at a discount of 5 per cent.
A day earlier, NTPC shares reserved for institutional investors were oversubscribed 1.17 times, according to stock exchange data.
Through its OFS, the company is off-loading 41.23 crore shares, or 5 per cent of stake.
Institutional investors placed bids for 38.66 crore shares, over and above the 32.98 crore shares reserved for them.
NTPC had informed the stock exchanges that more shares can be issued in case of over subscription of the initial OFS offer.
“Further, up to 5 per cent of the equity shares sold pursuant to the offer (over and above the offer shares) may be offered to eligible and willing employees of the company at a discount of up to 5 per cent of the cut-off price subsequent to completion of the offer,” it said.
In July, NTPC reported a 12 per cent rise in its standalone net profit for the first quarter of the current fiscal ended March, at Rs 2,618.17 crore, up from Rs 2,338.61 crore during the corresponding period in 2016-17.
The Centre has a disinvestment target of Rs 72,500 crore for the current fiscal, of which it has raised Rs 8,880 crore through stake sale in six public sector units.