Trying to raise capital in the primary markets, the State run power company, NTPC, is planning to come up with its FPO tomorrow. The issue will be in the market for three days and would be closing on Friday.

The company is expecting to raise about Rs. 8,500 crore during the process. Price of each share will be Rs. 201. The employees of the company would, however, get shares at a discount of Rs. 10.

Through this disinvestment process, NTPC would be selling 5 per cent of its stake to the new shareholders. The government currently holds 89.5 per cent.

The lead managers of the issue are ICICI Securities, Citigroup Global Markets, JP Morgan and Kotak Mahindra Capital.

While the things are going fine for now, the issue which must concern the authorities is that till now all the public offerings done by power companies have failed to create any buzz. The biggest flop was the issue of NHPC, which finally traded at a rate much lesser than the earlier decided issue price. In such a case, how much money can the government get will be a matter to watch out for.