NTPC, IOC trend down as govt approves stake sale

Mumbai: Shares of NTPC and Indian Oil today witnessed selling pressure following reports that the Union cabinet approved proposals to divest its stake in both the companies.[caption id=“attachment_2114339” align=“alignleft” width=“380”]  NTPC, Indian Oil had a hard time in the bourses today. Reuters[/caption] NTPC’s stock fell 5 percent to Rs 134.30 on BSE. Similar selling was seen in IOC, which shed 2.62 percent at Rs 324.05. “The cabinet has approved 5 percent disinvestment in NTPC and 10 percent in Indian Oil Corporation (IOC),” a source said after the cabinet meeting. According to BSE data, the market capitalisation of NTPC stood at Rs 1,11,313.77 crore while that of IOC was Rs 79,321.21 crore as of today. The proposed share sale of 5 percent in NTPC would fetch the government Rs 5,565 crore while that of 10 per cent in IOC would translate into Rs 7,932 crore. Thus, the stake sale in both companies would help the government mop up over Rs 13,000 crore at current market price. The government holds 74.96 percent in NTPC and 68.57 percent in IOC, according to BSE data. PTI