Post OFS, LIC hikes stake in NTPC to 14.25%

NTPC on Thursday informed stock exchanges that Life Insurance Corporation (LIC) of India now holds a 14.24% stake in the company, a day after the government raised about Rs 9,100 crore by selling a 7% stake in the state-run power producer through an offer for sale (OFS). The state-owned insurer has increased its stake from 11.15% to 14.24%. LIC could have invested around Rs 4,275 crore, based on the floor price of Rs 168, which is nearly half of the total amount raised by the government. LIC acquired 25.44 crore shares or 3.08% of the total paid up capital of the company. The OFS saw bids for 54.8 crore shares against 82.4 crore shares on offer including the green shoe option.

Post OFS, the shareholding of the government would come down to 63.1% from 69.74%. The government hopes to raise Rs 72,500 crore in FY18 through a combination of minority stake sales, strategic disinvestments and through the listing of state-owned insurance companies. The government raised Rs 46,246.58 crore in FY 17 through buybacks, OFS, stake sales through central public sector enterprises exchange traded fund (CPSE ETF), and through divestment of strategic holdings in Specified Undertaking of Unit Trust of India (SUUTI). Of this Rs 8,003.87 crore came through OFS and employee OFS in various companies. NHPC, HCL, NBCC, MOIL, and BEL were among the companies in which the government sold stakes.