New Delhi: In a remarkable response from international roadshow, state-run NTPC today said it is hoping a subscription of up to Rs 6,000 crore from the global investors to its follow-on public offer next month.
"We met 38 global investors during the week-long global roadshow. It is sort of a record and we are overwhelmed by their response. We are expecting 50 per cent of qualified institutional buyers (QIBs) quota to come from these investors ranging between Rs 5,000-6,000 crore," NTPC Chairman and Managing Director RS Sharma told PTI from New York.
NTPC is offering 5 per cent of its equity as part of government’s disinvestment programme and going by the claims of the company, the government may garner over Rs 12,000 crore from the stake sale.
The QIB portion consists of 204 million shares, Sharma said, adding that most of the people they met are long-term investors and they are interested in sustainable growth of the company.
NTPC will hit the capital market with FPO on February 3. Power major is coming out with over 41 crore (41,22,73,220) equity shares of Rs 10 each at prices to be determined through an alternative book building process. The issue closes on February 5.
Asked to name some of the investors, Sharma declined to reveal, but sources said that some of the leading financial investors, including US-based Janus Capital and Capital Group have shown keen interest in subscribing to its shares in the forth coming public offering.
Sidhartha Pradhan, the Joint Secretary, Department of Disinvestment, who is also part of team for the global road show, said, "There are many emerging funds for emerging countries like India and Brazil. They are mutual funds, hedge funds and are likely to subscribe to the FPO in a big way.
"NTPC is an iconic company. They (investors) are well aware about the performance of power PSU. NTPC has been paying more than 30 per cent returns on its investments and this would have positive impact on their decision,? he added.
NTPC, currently generating about 30,000 MW of electricity, has planned to invest up to Rs 2,25,000 crore in the next seven years to become 75,000 MW company.
NTPC, primarily a thermal power generator, has diversified into other sources like hydel and nuclear and by 2017 it would have 9,000 MW from hydel sources while 2,000 MW from nuclear.
As far as source of funding is concerned, Sharma said all projects are being financed in the debt-equity ratio of 70-30 and for the equity portion the company has comfortable cash flows and would be financed from internal accruals.
"If required, the company may approach the debt market both in India as well as international to raise funds at later stage," he said.