State-owned National Thermal Power Corporation on Monday filed draft prospectus with the market regulator Sebi for enhancing equity by 5.25 per cent through an initial public offer.

NTPC would issue 432.915 million shares of Rs 10 each comprising 5.25 per cent of the existing equity base, company sources said.

Of the proposed 5.25 per cent equity, 0.25 per cent, comprising 20.615 million shares, would be offered to the NTPC employees, they added.

With the IPO, the government's stake in NTPC would come down to 95 per cent of the enhanced equity base.