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Power major NTPC lists at premium

By Our Special Correspondent



The Chairman and Managing Director of National Thermal Power Corporation, C. P. Jain (right), with the Managing Director of National Stock Exchange, Ravi Narain, at the listing of NTPC shares on the NSE. — Photo: Paul Noronha

MUMBAI, NOV. 5. The shares of National Thermal Power Corporation (NTPC) were listed today on the National and Bombay stock exchanges. It listed at Rs. 88 on the NSE, and at Rs. 70 on the BSE. With this listing the power major has become the third largest company in terms of market capitalisation, after ONGC and Reliance Industries. The issue price was fixed at Rs. 62 per share of Rs. 10 each. On the NSE and the BSE the scrip closed at Rs. 75.55.

The company got listed on the derivatives segment also. There were some block deals also reported in NTPC shares; one was of 31.81 lakh shares at Rs. 70.50 and the other of 65.78 lakh shares at Rs. 70.90. On the NSE, it recorded 23.25 crore trades with a turnover of Rs. 1700 crores. However, the volumes were low on BSE as it recorded 1.42 lakh trades with a turnover of Rs. 757 crores. According to some market intermediaries, investors sold other power sector stocks in order to take an exposure in NTPC, which is the biggest power company in India.

At a ceremony organised by the NSE, P. C. Jain, Chairman and Managing Director, NTPC rang the ceremonial gong to commemorate the listing of India's largest power generating company and commencement of trading for the day.

The public issue was of 86.58 crore equity shares of Rs. 10 each consisting of a fresh issue of 43.29 crore equity shares of Rs. 10 each by NTPC and an offer for sale of 43.29 crore equity shares of Rs. 10 each by the Government was oversubscribed by about 12 times the issue size. The bidding price band for the IPO was Rs. 52-62 per share.

Mr. Jain said he was satisfied with the listing price. NTPC is one of the top ten power utilities companies in the world. With government targeting to double generation capacity to 2.12 lakh MW by 2012 and its aim to enhance installed capacity by 100 per cent to 43,000 MW, we believe it will be the largest beneficiary to take advantage of the emerging growth opportunities in the sector, said Mayuri Yadav, HDFC Securities.

On the sidelines of the listing ceremony, Mr. Jain said there was no proposal to take over Dabhol Power Company (DPC). However, he refused to divulge any other information in this regard even though there were reports that NTPC might takeover the power plant.

Generation of electricity from the first phase of the plant was stopped in May 2001 over payment dispute with the Maharashtra State Electricity Board (MSEB). The plant with a total capacity of 2184 MW has been lying idle since then.

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