The NTPC follow on issue seems to have failed its objective, as hardly anyone other than the PSU FIs have subscribed in large numbers, that too i suspect due to heavy pressure from the babus and netas. Worse the market crash of today, has not helped one bit.
Check out the Stats here.
|Sr.No.||Category||No.of shares offered/reserved||No. of shares bid for||No. of times of total meant for the category|
|1||Qualified Institutional Buyers (QIBs)||204000000||320533444||1.5712|
|1(a)||Foreign Institutional Investors (FIIs)||9000936|
|1(b)||Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)||311532508|
|2||Non Institutional Investors||61200000||4693640||0.0767|
|2(b)||Individuals (Other than RIIs)||174356|
|3||Retail Individual Investors (RIIs)||142800000||4766776||0.0334|
Updated as on 04 Feb 2010 at 1700 hrs
This should be a big jolt to the cash strapped govt which has ramped up the fiscal defecit over the years and a huge question mark for the govt desperate to control its fiscal deficit via the disinvestment process.
I was expecting at least a good qib and fii subscription but this was not to be. When the stock falls from 242 to Rs 211 to 204 in a little more than a month , it was foolish of the govt not to give at least a 5 to 10 % discount to public . Even the staff subscription (at a discount of Rs10) has been abysmally low. Worse all bids are price bids and no one wants to risk bidding at cutoff. Hope this is an awakening to a greedy govt that expects people to subscribe to its IPOS with their eyes shut that to at petty discounts , while it openly milks them of due profits.