The government today announced the floor price for its offer for sale of 5% of the equity in NTPC. The floor price is Rs 201 which is a discount of Rs 10.25 per share or 4.85% on Monday’s close of Rs 211.25 on the BSE.

Retail investors and HNI’s will be offered half the issue at this floor price while the remaining half will be offered by French Auction to QIB’s. The stock markets were trading higher during the first few hours of trading at the time of writing this article with the BSESENSEX up 61 points at 16417 at 11.15 am, but the stock price of NTPC is down Rs 3.65 or 1.72% at Rs 207.65.

The issue opens on Wednesday the 3rd of February and closes on Friday the 5th of February. Institutional bidding and all action from retail and HNI’s is expected on Friday. The bids by QIB’s cannot be revised downwards in terms of quantity or price but can be revised upwards in either or both cases.

Discount of Rs 10 per share to NTPC employees.

More on this issue tomorrow.