One thought came to me last night when I was trying to see how things can be in the Indian power sector in 5-10 years from now, especially on the Nuclear power side.
NTPC plans to initiate nuclear power. Reliance Power also has plans to set-up a nuclear power plant as well – that may happen, and RNRL could become supplier/owner of Uranium mines. This scenario could come sooner is RNRL lost the court case because they may want to use other options.
Everyone in India is doing a JV with Nuclear Power Corporation of India Limited (NPCIL) and Uranium Corporation of India Limited (UCIL). Continue reading Future Uranium Suppliers in India
update 10 Feb 2010: NTPC FPO was a disappointment with the Govt. of India selling equity at a much lower price than what it could have been sold for. If the promoter values the shares for less, external investors will also give it even lesser value. If the FPO floor price was fixed at Rs 225 than Rs 201, I believe it would have done better.
NTPC FPO share price target
= Rs 242 (if target is Rs 10,000 cr from the 5% equity sale)
= Rs 266 (if target is Rs 11,000 cr from the 5% equity sale)
The current market price at Rs 230.
The government plans to raise around Rs 11,000 crore by divesting 5% stake in NTPC, making it the second largest public offer in the financial year 2009-10. The issue will be launched in the first week of February and the prospectus with SEBI will be filed this week.
In the second supplement of the Budget 2009-10, the government had provided Rs 4,200 crore to be raised from disinvestment in the current fiscal. According to one estimate, now the government aims to raise Rs 27,400 crore more in the next three months till March 2010. So far, it raised around Rs 4,260 crore via sell off in Oil Inida and NHPC. In total, the government hopes to raise around Rs 32,000 crore in 2009-10, which is more than 50% of the money so far raised since 1991 through divestment programme (Rs 57,683 crore). Continue reading Govt Getting Ready To Sell 5 Percent Equity of NTPC for Rs 11000 Crore