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| NTPC FPO subscribed 1.2 times |
| Press Trust of India / New Delhi Feb 05, 2010, 20:50 IST |
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The public offer of the government-run power major NTPC, the first mega public offer of 2010, managed to scrape through today with the issue getting subscribed 1.2 times.
The issue, through which the government is divesting 5 per cent of its stake, at a floor price of Rs 201 a share, opened on February 3 and closed today. At the floor price, the follow-on-public offer (FPO) is valued at Rs 8,286 crore.
By the second day, the issue could manage only 80 per cent subscription--77 per cent on the opening day and just 3 per cent on the second day yesterday. Going by the poor response till yesterday, analysts were warning that the issue could even be under-subscribed.
According to the latest data available with the National Stock Exchange, the FPO received bids for 49.36 crore shares as against 41.22 crore shares on offer. At the given floor price, the subscription generated the demand worth Rs 9,922.56 crore.
However, NTPC Chairman and Managing Director R S Sharma told reporters here that the offer was well received.
"Response from retail and HNIs has been 25-30 per cent. But the overall subscription is 1.20 times. QIB (qualified institutional buyers) response is 2.18 times. As far as FIIs are concerned, there has been a very good response from them," Sharma said.
The QIB portion of the FPO was over-subscribed 2.18 times. The QIBs were offered 20.40 crore shares (50 per cent of the total).
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