Sovereign wealth fund GIC of Singapore has cornered shares worth Rs 1,000 crore in the NTPC divestment, in which foreign funds bought almost 45 per cent of the shares put on sale.

“Foreign institutional investors have been allocated 44.92 per cent of shares, while banks and insurance companies got an allotment of 11.05 per cent and 24.87 per cent 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 from NTPC disinvestment stands at Rs 11,496.39 crore.

“GIC of Singapore bid for the maximum quantum of shares at over Rs 1,000 crore,” the source said.

The shares of NTPC are quoting at Rs 148.55, 0.27 per cent higher than previous close on the BSE.

The allotment to the country’s largest insurer LIC was 15 per cent of the total allotment made, the official said, adding that mutual funds got 8.35 per cent 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 a 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 per cent stake on the block.

The Government holding in NTPC will now come down to 75 per cent.

Citigroup, Morgan Stanley, Goldman Sachs, Deutsche Equities, Kotak Securities and SBI Cap Securities 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 the Government inch towards the Rs 30,000 crore budgeted target.

Receipts from the stake sale would also help the Government restrict its fiscal deficit at 5.3 per cent of GDP in the ongoing fiscal.

(This article was published on February 8, 2013)
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