NEW DELHI: The sudden change in the global market condition and the sharp fall in Indian stock market could affect the price NTPC gets in its follow-on offer that is scheduled to open on February 3.

A meeting between four investment bankers and officials from NTPC and department of disinvestment on Thursday remained inconclusive due to differences over the pricing of the issue that also has government divesting 5% stake or 41 million shares of NTPC. According to officials from the investment bankers and NTPC, while the government is seeking a minimum benchmark price of Rs 220 for the offer, the investment bankers are suggesting a price of Rs 200 per share factoring in the recent developments.

It has now been agreed that both the side will meet again on Friday after market close to finalise the floor price of the issue that is slated to take the auction route.

It has been broadly agreed that the floor price would be finalised at around 5-10% discount to average price of NTPC over the last three days of the current week (Wednesday, Thursday and Friday), one investment banker said requesting anonymity. Based on the recommendation of the investment bankers, a final decision on pricing will be taken by the empowered group of ministers (eGoM) on February 1, a government official said.

If the government buckles under pressure from investment bankers, the price of NTPC issue would not be more than Rs 200 per share. At this price the government would mobilise around Rs 8500 crore, down by Rs 2,500 from the Rs 11,000 crore that government originally targeted to raise from the public offer.

“NTPC issue should not be equated with recent public offerings of other power companies that failed to make major gains in trading. The company’s shares have been in the market for some time and has given good returns to investors,” said the government official.