New Delhi: Pushing forward its disinvestment agenda, the government Thursday approved sale of its 9.5 percent stake in the country's largest power producer NTPC that could fetch as much as Rs 13,000 crore.
The Cabinet Committee on Economic Affairs (CCEA), at its meeting today, gave the green signal for NTPC disinvestment by way of offer for sale through stock exchanges.
The approval comes a day ahead of the four percent stake sale in Hindustan Copper Ltd (HCL) -- the government's maiden disinvestment in the current fiscal. The government has set a target of mopping up Rs 30,000 crore through sale of shares in various public sector companies.
"After the disinvestment, Government of India's shareholding in the company would come down to 75 percent. The paid up equity capital of the company, as on March 31, 2012, is Rs 8,245.46 crore," an official statement said.
The President of India holds 84.5 percent stake in the company, it added.
At the current market price, the stake sale (over 78.33 crore shares) is likely to fetch Rs 13,000 crore for the exchequer. Shares of NTPC today closed at Rs 163.70, up 1.05 percent at the BSE.
The disinvestment would help NTPC to comply with the minimum public shareholding norms.
Meanwhile, the government has decided to re-allocate three coal blocks that were taken away from NTPC for delay in the development of those mines, sources said.
With the re-allocation of coal blocks, the overall valuation of NTPC is expected to go up. This would help the government to get higher returns from the proposed share sale.
NTPC became a listed company in 2004. Thereafter in 2009, government further diluted its stake in the power producer.
First Published: Thursday, November 22, 2012, 19:49