India raises USD 1.4bn from sale of small NTPC stake
Solar plant in India. Source: NTPC. License: All rights reserved.
The Indian government last week sold a stake of around 6.6% in the country's largest power generator NTPC Ltd (BOM:532555), raising INR 91 billion (USD 1.4bn/EUR 1.2bn).
Through a two-day offer for sale (OFS), the government reduced a bit its majority stake in the company. Moody's Investors Service said the transaction would have no impact on the company's Baa3 issuer rating as the government's shareholding did not fall below 50%.
NTPC has 51.7 GW of power generation capacity, including nearly 0.9 GW of solar power plants. These produced 455 million kWh in August, so its solar power output jumped three-fold from August 2016, the firm said in the weekend.
Under the OFS, the government was offering a 5% stake in NTPC, or 412.3 million shares, to institutional and retail investors. The was an oversubscription option of a further 412.3 million shares. The total volume sold amounted to 548 million shares, according to Reuters.