New Delhi: Sovereign wealth fund GIC of Singapore has cornered shares worth Rs 1,000 crore in NTPC divestment in which foreign funds bought almost 45 percent of shares put on sale.
"Foreign institutional investors have been allocated 44.92 per cent of shares, while banks and insurance companies got allotment of 11.05 per cent and 24.87 percent, respectively," an official source said.
The cut-off price for the share sale has been fixed at Rs 145.55 apiece and the final realisation of the government stands at Rs 11,496.39 crore from NTPC disinvestment.
"GIC of Singapore has bid for the maximum quantum for the shares at over Rs 1,000 crore," the source said
Shares of NTPC are quoting at Rs 148.55, 0.27 percent higher than previous close on BSE today.
The allotment to country's largest insurer LIC was 15 percent of the total allotment made, the official said, adding that mutual funds got 8.35 percent of the total shares on the block.
The blockbuster share sale yesterday was over-subscribed 1.7 times. The offer price was lower than the scrip's trading rate on stock exchanges and the issue received tremendous response from foreign investors.
The government had fixed the floor price or the minimum offer price at Rs 145 apiece. The indicative price, which is the weighted average price of all valid bids, came in at Rs 145.91 at the close of auction.
The total demand received for the offer was for 132.84 crore shares, which is 1.7 times of the 78.32 crore shares or 9.5 percent stake on the block.
Government holding will now come down to 75 percent in NTPC.
Citigroup, Morgan Stanley, Goldman Sachs, Deutsche Equities, Kotak Securities and SBI Cap Securities are acted as the merchant bankers for the stake sale.
The total proceeds realised from disinvestment would be over Rs 21,500 crore so far this fiscal, with the success of NTPC issue helping government inch towards the Rs 30,000 crore budgeted target.
Receipts from the stake sale would also help government restrict its fiscal deficit at 5.3 per cent of GDP in the ongoing fiscal.