After the mega public issue of TCS, National Thermal Power Corporation is to come out next month with a public issue of 865 million shares, for which it has filed the revised prospectus with SEBI.

The issue would include a sale of 5.25 per cent government holding and raise over Rs 4,500 crore (Rs 45 billion). The shares to be sold amount to 10.5 per cent stake.

The state-owned entity filed its revised prospectus with the Securities and Exchange Board of India.

The public issue of 865 million equity shares of Rs 10 each would consist of a fresh issue of 43.2 crore (Rs 432 million) shares and an offer for sale to offload equal number of shares owned by the government of India and thereby reduce its stake to 89.5 per cent, as per the draft prospectus filed with SEBI.

The book built issue, which will hit the market on September 23, 2004, would have 50 per cent allocation for Qualified Institutional Buyers on a discretionary basis, 25 per cent would be set aside for non-institutional bidders (high net worth individuals) and 25 per cent to retail individual investors.

Besides, 20.6 million shares have been reserved for the employees, it said, adding the post issue outstanding capital base would consist of 824.5 million equity shares.

NTPC would use the funds to support existing activities as well as add additional generation of 9,370 MW of power with a capital outlay of Rs 41,522 crore (Rs 415.22 billion) by the end of fiscal 2007.

The projects would be funded through debt equity ratio of 70:30 and the equity component would get funds from internal accruals and fresh issue of equity, it said.