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Rediff.com  » Business » NTPC follow-on offer subscribed 61% within hours

NTPC follow-on offer subscribed 61% within hours

February 03, 2010 13:17 IST

NTPC unitThe follow-on public offer of state-run power major NTPC was subscribed 61 per cent in the first two hours of its opening on Wednesday.

The issue received bids for over 25 crore (250 million) shares against 41.22 crore (412.2 million) equities on offer, according to the data available with the National Stock Exchange.

NTPC has come out with an issue size of 41.22 crore (412.2 million) shares at a floor price of Rs 201 per piece.

At the floor price, the government, which is divesting its five per cent stake, would raise Rs 8,286 crore (Rs 82.86 billion) from the market.

In secondary market, shares of NTPC surged 2.23 per cent to Rs 210.60 in afternoon trade on NSE.

NTPC was listed on the stock exchanges in November 2004.

The offer is being made through the alternate method of book building under which institutional investors would submit their bids at any price above the floor price.

Bidders other than QIBs like non-institutional bidders and retail individual bidders will apply at the floor price.

Up to 50 per cent of the net offer will be allocated to qualified institutional buyers.

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