Government to sell NTPC's 5 % stake by February 3

New Delhi, Jan 15 (ANI): Power Generation Company, NTPC said on Friday, the government plans to get rid of five percent stake in the company through the follow on public offer that would open on February 3.

A company statement said, "The follow-on public offer of the country's largest power producer in which the government holds 89.5 per cent stake would close on February 5."

The minimum bid lot and floor price would be decided a day before the opening of the offer.TPC public offer is valued at Rs 9,525.57 crore at the current market price.

The shares of NTPC closed today at Rs 231.05 on the Bombay Stock Exchange gaining around 0.59 percent.TPC plans to enter the capital market with an issue size of 41.22 crore-equity shares of Rs 10 each at a price to be determined through book-building process.

Of the FPO, a total of 42.73 lakh shares have been reserved for NTPC employees.

The company in a statement said, the company has filed the Red Herring Prospectus with market regulator Securities and Exchange Board of India (SEBI) for the public issue.

The government's share in NTPC would come down to 84.5 percent after the five percent stake dilution.

The Cabinet Committee on Economic Affairs had approved the stake sale proposal in October last year.

JP Morgan India, ICICI Securities, Citigroup Global Markets India and Kotak Mahindra are the book running lead managers to the offer. (ANI)