Future Public Issues of PSUs Might be More Attractively Priced by the Governments
The Government, much disappointed over the poor participation of the investors in the follow-on public offer of NTPC, India's power giant, might just consider pricing all future issues of state-operated companies more attractively.
As has been shared by the Corporate Affairs Minister Salman Khurshid, there were various "complicating views" on the pricing of the issues when the Government had publicly and officially announced its decision to float 5% of the equity in the company.
"This is an area for the Public Enterprises Department. There are several views on that (pricing future issues in a more attractive fashion), but we are not directly involved so I don't know what the final view will emerge. Certainly, this is something that is being kept in mind", he said.
India's largest power generating firm hit the market on February 03, with the aim to raise over Rs. 8, 200 crore with its FPO.
The issue, which came to a close today, had been subsidized by 1.19 times on both the BSE and the NSE. The NSE website has confirmed that the offering managed to receive bids of 48.9 crore for over 41 crore equity shares that had been floated.