<div>The government plans to sell 10 per cent of its stake in Nuclear Power Corporation of India Ltd (NPCIL) through an initial public offering (IPO) that will list the company on the stock exchanges.<br /><br />At book value, the sale will fetch the government about Rs 2,500 crore but the actual realisation can be much higher depending on the pricing and timing of the issue.<br /><br />The Department of Disinvestment in the Ministry of Finance circulated a draft note seeking comments from concerned ministries on divestment of 10 per cent out of Government's 100 per cent shareholding in the company, sources privy to the development said.<br /><br />After comments of concerned ministries are received, the issue will be put up before the Cabinet Committee on Economic Affairs (CCEA) for approval.<br /><br />The issue is unlikely before the next fiscal as the company has to first split its share and appoint four independent directors on its board to meet SEBI's listing requirement.<br /><br />NPCIL has a paid up equity capital of Rs 10,174.33 crore comprising of 10.17 crore shares each having a face value of Rs 1000. Prior to the divestment, the shares will be split to bring down the face value to Rs 10.<br /><br />Post split, 101.74 crore share of Rs 10 each or 10 per cent government shareholding, will be divested in domestic market, they said.<br /><br />NPCIL had reported a net profit of Rs 1,906 crore on a turnover of Rs 7,914 core in 2011-12. It had a networth of Rs 25,428 crore.<br /><br />Sources said a 5 per cent price discount on the upper end of the price band may be allowed for the retail investors in the proposed IPO of NPCIL. The IPO will provide reservation to employees of NPCIL.<br /><br />(PTI)</div>
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