NTPC gained 2.15% to Rs 218.60 at 10:01 IST on BSE after the government cleared partial sale of its stake in state-run power major through a follow-on-public offer.
Meanwhile, the BSE Sensex was up 54.06 points or 0.31% to 17,380.07
On BSE, 3.19 lakh shares were traded in the counter as against an average daily volume of 7.61 lakh shares in the past one quarter.
The stock hit a high of Rs 223 and a low of Rs 217.25 so far during the day. The stock had hit a 52-week high of Rs 233 on 15 June 2009 and a 52-week low of Rs 113 on 27 October 2008.
The stock had underperformed the market over the past one month till 17 October 2009, rising 2.64% as compared to the Sensex's 3.68% rise. It had also underperformed the market in the past one quarter, gaining 4.29% as compared to the Sensex's return of 17.50%.
The large-cap state-run power generate firm has an equity capital of Rs 8245.46 crore. Face value per share is Rs 10.
The current price of Rs 218.60 discounts the company's Q1 June 2009 annualised EPS of Rs 10.64, by a PE multiple of 20.54
The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh in a meeting on Monday, 19 October 2009 approved a proposal to sell a 5% stake sale in state run power major NTPC. The government's current holding in NTPC is 89.5%, which will come down to 84.5% after the proposed sale of equity.
In 2007, NTPC had sought permission from the government to raise Rs 6,000 crore from the international market, but could not do so because of the opposition from Left parties to any lowering of the government's stake in Navaratna public sector undertakings. The government had then decided not to divest its stake directly or indirectly in Navratna companies.
The government's disinvestment proposal stems from the ruling United Progressive Alliance's vision of increasing 'public ownership' in state-run firms, a recurring theme -- outlined in the President's address to Parliament, the Economic Survey and the finance minister in his Budget speech 2009-10.
Meanwhile, in an ongoing legal battle between the state run NTPC and Reliance Industries (RIL), the Supreme Court on 2 October 2009 declined to interfere with a Bombay High Court order permitting Mukesh Ambani group company RIL to amend its written statement before the High Court in the gas dispute suit with NTPC.
In June this year, NTPC acquired a 44.6% stake in Transformers & Electricals, Kerala for Rs 31.34 crore from the Kerala state government. Transformers and Electricals Kerala makes and repairs heavy duty transformers.
NTPC will announce its Q2 September 2009 results on 23 October 2009. The company's net profit rose 27.1% to Rs 2193.62 crore on a 25.8% increase in net sales to Rs 12002.68 crore in Q1 June 2009 over Q1 June 2008.
NTPC owns and operates power generation plants that supply power to state electricity boards throughout India. The company also undertakes turnkey consulting projects to set up power plants.