CCEA clears 9.5% stake sale in NTPC

The Cabinet Committee on Economic Affairs (CCEA) has approved disinvestment of 9.50% equity in NTPC, out of its holding of 84.50% via an offer for sale of shares via stock exchanges as per SEBI Rules and Regulations. Govt hopes to fetch Rs.13,000 crore via this equity divestment.

Post-disinvestment, the government’s stake in NTPC will come down to 75% and this will assist NTPC in complying the minimum public shareholding norms.

• NTPC is a listed ‘Maharatna’ public sector undertaking (PSU) engaged in power generation.
• NTPC became public with its initial public offering hitting the market in 2004.
• In 2009, the government further diluted its stake in the company through Follow-on Public Offer (FPO).

Month: Current Affairs - November, 2012