NTPC OFS oversubscribed three times

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NTPC

The government’s effort to raise funds by selling a 5% stake in state power producer NTPC through a two-day offer for sale (OFS) received an enthusiastic response from institutional investors, who bid for almost triple the shares allocated to them in a volatile market. This OFS will cut the government’s stake in NTPC to 69.96% from 74.96% as of 31 December 2015.
Bids worth Rs.7,288 crore were received for the shares allocated to institutional buyers, of which Rs.5,325 crore came from insurance companies, while foreign portfolio investors bid for Rs.925 crore worth of shares.
Life Insurance Corporation of India (LIC) put in bids for shares worth around Rs.3,000 crore, approximately 40% of the bids received on Tuesday, according to two people involved in the offer. They requested anonymity as they are not authorized to speak to reporters.
Earlier this financial year, LIC stepped in and salvaged Indian Oil Corporation’s offer for sale by buying almost 86% of the issue size of Rs.9,379 crore.
Disinvestment secretary Neeraj Kumar Gupta said participation by foreign investors in the NTPC share sale was encouraging and hoped that the retail portion too would receive a good response.

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