The initial public offer (IPO) of National Thermal Power Corporation (NTPC) will hit the market on September 23.
NTPC estimates raising upto Rs 5,000 crore by selling about 86 crore shares each of Rs 10 face value.
The National Thermal Power Corporation estimates raising up to Rs 5,000 crore by selling about 86 crore shares each of Rs 10 face value.
By clubbing both -- NTPC's IPO for 5.25 per cent equity and divestment of 5.25 per cent of the government stake -- NTPC would enter the market to offer shares worth face value of Rs 865 crore which could fetch about Rs 5,000 crore.
The Government is also likely to mandate the three lead managers -- ICICI Securities, Enam Financial Consultants and Kotak Mahindra Capital Company -- chosen by NTPC for its IPO.
NTPC has a paid-up capital of Rs 7,812 crore and the IPO would constitute Rs 432 crore and this would be issued as new equity shares, thereby enhancing the equity base to Rs 8,244 crore.
Future Outlook for NTPC
NTPC Eyes Rs 1,40,000-cr Turnover By 2017
The state-run National Thermal Power Corporation (NTPC), whose initial public offer (IPO) will be launched on September 23, proposes to achieve the group turnover of a record Rs 1,40,000 crore by 2017. NTPCs corporate plan also includes becoming Fortune 500 company and an Indian MNC with presence in many countries, increasing the generating capacity 56,000 mw from the present level of 20,000 mw with a well diversified fuel portfolio.
NTPC said that the power generation through thermal would rise to 42,000 mw, hydro (11,000 mw), nuclear (2,000 mw) and non-conventional fuels/distributed generation (1,000 mw). However, sources made it clear that the Corporation would regularly review share of coal based generation based on technology developments and changes in availability/pricing of alternate fuels.
The Corporation hopes that hydro generation would comprise 20 per cent of its portfolio. It proposes to implement power projects with the generating capacity of 6,000 mw through joint venture comprising 2,000 mw of nuclear power projected planned with Nuclear Power Corporation of India.
According to NTPCs corporate plan, it would have a presence in coal mining (20 million tonne per annum (MTPA) in operation) on a joint venture/build own operate basis in addition to this 10-15 MTPA to be identified for production in the 13th plan period. The Corporation proposes to meet its 75 per cent requirements through coal washeries business.
Moreover, the Corporation proposes to have its presence in the distribution sector for the distribution of 2,000 mw. It has already launched initiative to set up a national power exchange to achieve 25 per cent share in traded energy about 35 billion units to be traded by 2017).
NTPC proposes to have overseas ventures of 1,000 mw through acquisition or building as part of the Globalisation Trust. "NTPC would be an established brand name among three brands in Asia Pacific region, recognised and valued brand in Middle East and Africa and presence in other markets including developing markets. Potential annual turnover of Rs 700 crore in 2017 from global operations," sources said.
NTPC would have a significant proportion of its ownership held by the domestic and international investors. According to its corporate plan, up to 50 per cent it has projected non-government holding comprising retail shareholders (India and international stock markets), institutional investors (financial institutions and foreign institutional investors), employee participation. It proposes to list on 2-3 leading international stock exchanges.
India's biggest power producer, state-run National Thermal Power Corporation (NTPC) has set a price band of 52-62 rupees per share for its forthcoming initial public offering (IPO), a source close to the deal said.
"The IPO is expected to open in the first week of October," the source, who declined to be identified, told Reuters on Tuesday.
The offer of 865.83 million shares is for 10.5 percent of NTPC's enlarged capital, potentially raising 53.68 billion rupees ($1.17 billion) at the top end of the price band.
That pricing will value the company at $11.1 billion, making NTPC India's third-most valuable company by market capitalisation, alongside Indian Oil Corporation.
NTPC's offer comes close on the heels of India's biggest ever IPO so far -- the Tata Consultancy Services Ltd. offer which concluded last month, raising $1.17 billion.
The government's stake in NTPC will reduce to 89.5 percent after the issue.