NTPC disinvestment raises Rs 11,000 crore
Following the target of Rs. 30,000 to be raised through disinvestment in this fiscal, the government has sold 9.5% share of NTPC through Offer for Sale (OFS) through which the government mobilized about Rs 11,400 crore (about $2.1 billion).
- So far in the fiscal, the government has mobilized about Rs 20,000 crore though divestments of its stake in these companies, which is about 67% of its target.
- This would also help the government remain closer to its fiscal deficit target of 5.3% of GDP. The recent change in rules for OFS, of allowing institutional investors to bid for stocks at no margin, helped the NPTC issue sail through.
- Earlier, institutions had to put in full margin money while bidding in an OFS. Under the new rules, an institutional investor which is bidding in OFS without any upfront margin, cannot revise its bid price downward, while those bidding with full margin money can do so.