NTPC OFS oversubscribed: Govt likely to garner Rs 11,469 cr

Excerpts from What's Hot on CNBC-TV18 Watch the full show »

The big daddy of the government's divestment agenda, NTPC  , had a successful offer for sale. The offer was subscribed 1.69 times . This was at a final indicative price of Rs 145.91 per share versus the floor price which was set at Rs 145 rupees per share.

The issue has received bids for 132.8 crore shares. CNBC-TV18's sources say that the cut for the NTPC OFS was set at Rs 145.55 rupees per share and that the government will get Rs 11,469 crore from this issue, a tad lower than its Rs 12,000 crore rupee target.

However, this boosts the government's total earnings from divestment to over Rs 20,000 crore.

According to Prtihvi Haldea, CMD, Prime Database the government would be extremely happy at this response because you know it has been oversubscribed and significantly oversubscribed. "Given the size of the issue, I think the response is overwhelming and the government should be very happy that, you know, this has not gone the ONGC or any other, you know, different way," he adds.

However, sounding a bit apprehensive, SP Tulsian of sptulsian.com said, "Definitely the OFS is a successful one, but what is interesting to note is that if you see upto 3.15 pm, the OFS had received close to about 95 cr shares. And I would have been happy to see the indicative price crossing Rs 147/share, since it has come you know, between Rs 145 -146/share, one can still say that the OFS has been successful, but ultimately, the quality of the investors which we will get to know maybe in the next 3-4 days, that who all have applied for and allotted the share, will be very interesting to see that."