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India’s NTPC files draft prospectus for IPO with SEBI

22 June 2004 – State-owned National Thermal Power Corporation (NTPC) Monday filed a draft prospectus with market regulator Securities and Exchange Board of India (SEBI) for enhancing equity by 5.25 per cent through an Initial Public Offer (IPO).

The corporation would issue 432.915m comprising 5.25 per cent of the existing equity base, company sources told PTI from Mumbai.

Of the proposed 5.25 per cent equity, 0.25 per cent, comprising 20.615m shares, would be offered to the NTPC employees, they added.

With the IPO, the government’s stake in NTPC would come down to 95 per cent of the enhanced equity base.

NTPC has mandated three merchant bankers, including Kotak Mahindra and ICICI Securities, to act as lead managers for its IPO.

Enam Financials has been appointed as the third joint lead manager-cum-book runner for the ensuing issue of shares.

NTPC has an equity base of Rs80bn ($1.7bn) and five per cent of the equity, to be issued in the market, would comprise the total face value of Rs4bn.

The issue would be priced at a premium to account for the substantial reserves the Corporation has built up over the years.

NTPC had obtained the government’s approval for ten per cent public float in one or more phases earlier this year.

It had sought SEBI’s approval for a waiver of the listing norms, which require that at least ten per cent of the equity stock must be floating.