January 27, 2010 : Incorporated in 1975, National Thermal Power Corporation Limited (NTPC) is the largest power generating company in India. It has emerged as an ‘Integrated Power Major’, with presence in the entire value chain of power generation business. Apart from power generation, which is the mainstay of the company, NTPC has already ventured into consultancy, power trading, ash utilization and coal mining. NTPC ranked 317th in the ‘2009, Forbes Global 2000’ ranking of the World’s biggest companies.

The total installed capacity of the company is 30,644 MW (including JVs) with 15 coal based and 7 gas based stations, located across the country. In addition under JVs, 3 stations are coal based & another station uses naphtha/LNG as fuel. By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources and around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries and takeover of stations.

In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as fresh issue and 5.25% as offer for sale by Government of India. NTPC thus became a listed company in November 2004 with the government holding 89.5% of the equity share capital. The rest is held by Institutional Investors and the Public. The issue was a resounding success. NTPC is among the largest five companies in India in terms of market capitalization.

The current offering (FPO) is to divestment of 5% in NTPC Limited by GoI, which owns approximately 89.5% of NTPC’s Equity Share capital.

In 2009, NTPC contributed 28.6% of the total power generation of India. In 2009, NTPC was the top independent power producer in Asia, and ranked second in the world, on the basis of asset worth, revenues, profits and return on invested capital.

Objects of the Issue:

The objects of the Offer are to carry out the divestment of 412,273,220 Equity Shares by Government of India. NTPC Limited will not receive any proceeds from this FPO.

Issue Detail:

  1.  Issue Open: Feb 03, 2010 - Feb 05, 2010
  2.  Issue Type: 100% Book Built Issue FPO
  3.  Issue Size: 412,273,220 Equity Shares of Rs. 10
  4.  Face Value: Rs. 10 Per Equity Share
  5.  Minimum Order Quantity:
  6.  Listing At: BSE, NSE