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Shares of NTPC and Indian Oil today witnessed selling pressure following reports that the Union Cabinet has approved the proposals to divest its stake in both the companies.
NTPC stock fell 5 per cent to Rs 134.30 on the BSE. Similar selling was seen in IOC, which shed 2.62 per cent at Rs 324.05.
“The Cabinet has approved 5 per cent disinvestment in NTPC and 10 per cent in Indian Oil Corporation (IOC),” a source said after the Cabinet meeting.
According to BSE data, the market capitalisation of NTPC stood at Rs 1,11,313.77 crore, while that of IOC was Rs 79,321.21 crore as of today.
The proposed share sale of 5 per cent in NTPC would fetch the government Rs 5,565 crore, while that of 10 per cent in IOC would translate into Rs 7,932 crore. Thus, the stake sale in both companies would help the government mop up over Rs 13,000 crore at current market price.
The government holds 74.96 per cent in NTPC and 68.57 per cent in IOC, according to BSE data.
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