NTPC FPO Price Set at Rs 201 / share
NTPC said today it has fixed the base price at Rs 201 a share for its follow-on-public offer, which opens on Wednesday. At the floor price, the government would mop up Rs 8,286 crore (Rs 82.86 billion) from the market. It has also approved offering a Rs 10 per share discount to employees subscribing shares in the said offer, thereby fixing the floor price for the employees at Rs 191. The issue closes on February 5. The proceeds from the FPO would go to the Investment Fund that finances social sector schemes. The government has appointed ICICI Securities, JP Morgan, Citi and Kotak as investment bankers for the issue.
Apart from NTPC, state-run companies like Rural Electrification Corp, Satluj Jal Vidyut Nigam and mining giant NMDC are planning to hit the capital market to raise over Rs 50,000 crore (Rs 500 billion) by way of public offers in 2010.
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[...] the first time in the country, the French auction route was adopted for NTPC FPO. Soon after the sober closing of the issue everyone came out in the open lashing this approach. To [...]