NTPC Limited

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Government of India (GoI) sold 432.9 million equity shares of NTPC Limited (formerly National Thermal Power Corporation) through an initial public offering (IPO) in October 2004. The IPO also included a fresh issue of 432.9 million equity shares and raised a total of US$ 1,184 million. The partial divestiture was part of GoI’s program to privatize state-run firms and to raise funds to finance capital investments. As of March 2004, NTPC had a total generation capacity of 23,749 MW through its 13 coal based (19,480 MW), seven gas based (3,955 MW) and three joint venture projects (314 MW). NTPC also offered consulting, and engineering and construction services to power utilities in India and abroad. NTPC was listed on New York Stock Exchange and Bombay Stock Exchange in November 2004. ICICI Securities, Enam Financial Consultants and Kotak Mahindra Capital were the lead managers for the IPO. Out of the total IPO proceeds of US$ 1.18 billion, US$ 592 million was paid to the GoI and the balance was retained by the company to finance capital expenditure. As of December 2004, GoI held 89.5% of the total equity shares of NTPC and the balance 10.5% was held by financial institutions, institutional investors and the public. In February 2010, the national divested an additional 412,273,220 Equity Shares under a Further Public Offer equivalent to 5% of the shares in the company, reducing the government’s shareholding from 89.5% to 84.5% of India. The price of each equity share was Rs. 10, and the government collected INR 82867 million (US$1812 million). NTPC Limited did not receive any proceeds from this FPO. At the time of the second divestiture, the total installed capacity in the project company was 31,134 MW.