The Hindu : Business : NTPC issue oversubscribed

Online edition of India's National Newspaper
Friday, Oct 15, 2004

Business

Business

NTPC issue oversubscribed

By Our Special Correspondent

MUMBAI, OCT. 14. The Initial Public Offering of National Thermal Power Corporation oversubscribed by more than ten times and the shares of the power major, would be listed on November 5 on the stock exchanges. The price would be fixed in a day or two and is expected to be at the higher end of the band at Rs. 62.

"The issue is doing exceedingly well,'' said S. Mukherji, Managing Director and CEO, ICICI Securities, one of the book running lead managers to the issue.

"The market is hungry for high quality issues and this issue was a huge success," he added. Market participants keenly watched this IPO as it is the first disinvestment of the new Government.

According to reliable sources, the NTPC issue received 1.3 to 1.4 million application, which is a record; retail is more than a million, high net-worth individuals (HNI) 14 to 15 times and qualified institutional buyers (QIBs) 16 times of their portion. The final figures would be known tomorrow.

Post-listing, the NTPC is expected to be among the top five stocks in terms of market capitalisation.

The IPO aimed to raise Rs. 5,360 crores. The equity shares have a face value of Rs. 10 and were available across a range of Rs. 52-62.

The Government offered 86.58 crore shares constituting 10.5 per cent of the company's post-issue equity. Up to 2.06 crore shares are reserved for employees and 21.13 crore shares for retail investors.

Printer friendly page
Send this article to Friends by E-Mail

Business