National Thermal Power Corporation (NTPC) FPO opens from February 03, 2010 - Indian IPO Blog

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Thursday, January 28, 2010

National Thermal Power Corporation (NTPC) FPO opens from February 03, 2010

National Thermal Power Corporation (NTPC) Limited, the largest power generation company in India, is going to come up with a Follow-on Public Offer (FPO), which opens for subscription from Wednesday, February 3, 2010 The FPO would consist of 412,273,220 equity shares of Rs 10 each at prices to be determined through an alternative book building process

The Company is likely to adopt French Auction route for the pricing of FPO. A French Auction is a uniform-price auction used for pricing initial public offerings in France. In this offering, the firm announces a minimum (reserve) price. Investors place sealed bids for quantity and price. When the bids are in, the firm negotiates a minimum and maximum price with the market regulator

Any bid above the maximum price is eliminated as a virtual market order. The bidders who bid between the minimum and maximum price are awarded shares on a pro rata basis, each paying the minimum price.

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