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5.2.10

BUSINESS NEWS:-Govt may price future public issues of PSUs more attractively

MUMBAI: Disappointed over poor investor participation in the follow-on public offer of power giant NTPC, the government may consider pricing

future public issues of state-run companies more attractively.

Corporate affairs minister Salman Khurshid said there were a lot of "complicating views" on pricing of the issue when the government had announced its decision to offload 5 per cent equity in the company.

"This is an area for the Public Enterprises Department. There are several views on that (pricing future issues in a more attractive fashion), but we are not directly involved so I don't know what the final view will emerge. Certainly, this is something that is being kept in mind," he told reporters here.

The largest power generating company in India hit the primary market on February 3 to raise over Rs 8,200 crore with its follow-on public offer (FPO).

The issue, which closed today, has been subscribed 1.19 times on both the Bombay Stock Exchange as well as the National Stock Exchange, according to data from NSE website.

The FPO received bids 48.9 crore bids for over 41 crore equity shares, the website showed.
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