NTPC stock plunged 3 per cent as the government has started the disinvestment process.
The government will sell 5 per cent stake worth about Rs 5,029 crore ($733.1 million).
It has set the floor price at Rs 122 a share, a discount of about 4 per cent to NTPC’s closing price on Monday.
The OFS (offer for sale) is a good entry point and would also remove a stock overhang, JP Morgan says.
NTPC is down around 15 per cent so far this year vs NSE’s 10 per cent fall ($1 = 68.6000 Indian rupees).