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 | ||
| 1(c) | Mutual Funds | 0 | ||
| 1(d) | Others | 0 | ||
| 2 | Non Institutional Investors | 61200000 | 4693640 | 0.0767 |
| 2(a) | Corporates | 4487560 | ||
| 2(b) | Individuals (Other than RIIs) | 174356 | ||
| 2(c) | Others | 31724 | ||
| 3 | Retail Individual Investors (RIIs) | 142800000 | 4766776 | 0.0334 |
| 3(a) | Cut Off | 0 | ||
| 3(b) | Price Bids | 4766776 | ||
| 4 | Employee Reservation | 4273220 | 424704 | 0.0994 |
| 4(a) | Cut Off | 0 | ||
| 4(b) | Price Bids | 424704 |
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.
Tech and Trek 
fpo being undersubscribed means only 1 thing…
people don’t believe in the long term prospects of the company and think that the stock is overpriced….
the govt cannot offload the shares at a hige discount because if it does that… the existing stock holders will loose considerable value and will start dumping the stock
true , plus the french never helped too
french???
the french route /method of bidding