The follow-on public offer (FPO) of state-run power generation giant NTPC was bid 79% by 15:00 IST on day two, data on NSE showed. Most bids were at Rs 209 per share. The government has fixed the benchmark price for the proposed divestment of government stake at Rs 201 per share.

The institutional segment was oversubscribed on day one on Wednesday, 3 February 2010, as domestic institutional investors (DIIs). DIIs made a beeline for the issue. DIIs excluding mutual funds put in bids for 31.15 crore shares compared to 20.4 crore shares reserved for the qualified institutional buyers (QIB) segment as a whole. Foreign funds put in bids for 45.01 lakh shares on Wednesday.

NTPC's FPO is the first public issue which is adopting the French Auction route to raise funds. Under the French Auction model, institutional buyers are free to bid above a certain floor price. The highest bidder gets preference during the allotment of shares

The government currently holds an 89.5% stake in NTPC and it plans to dilute 5% through the FPO. At the floor price, the government would mop up Rs 8286 crore

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