The government’s 5 per cent sale of stake in power generator NTPC witnessed a successful start on Tuesday with shares reserved for institutional investors being oversubscribed 1.17 times, according to stock exchange data.

Through its offer for sale (OFS), the company is off-loading 41.23 crore shares, or 5 per cent of stake.

Institutional investors placed bids for 38.66 crore shares, over and above the 32.98 crore shares reserved for them.

In a notice to the stock exchanges on Monday, NTPC had said that more shares can be issued in case of over subscription of the initial OFS offer.

“Further, up to 5 per cent of the equity shares sold pursuant to the offer (over and above the offer shares) may be offered to eligible and willing employees of the company at a discount of up to 5 per cent of the cut-off price subsequent to completion of the offer,” it said.

“The floor price for the offer shall be Rs 168 per equity share,” the notice read. The sale of 5 per cent stake would fetch the government around Rs 7,000 crore. The floor price of Rs. 168 was at a discount of 3 per cent on Monday’s closing stock pri’e.

The OFS bidding for retail investors, who will be offered a 5 per cent discount, will take place on Wednesday. Over 8.24 crore shares have been reserved for them.

As per the offer, company employees will be eligible to apply for shares up to Rs 2 lakh each only.

Last week, NTPC said that it plans to seek shareholders approval to raise Rs 15,000 crore through the issue of bonds, debentures on private placement basis.

The company said in its annual report that funds raised through the issue of bonds, debentures will be used for capital expenditure, working capital and general corporate purposes.

Last month, NTPC reported a 12 per cent rise in its standalone net profit for the first quarter of 2017-18, at Rs 2,618.17 crore, up from Rs 2,338.61 crore during the corresponding period in 2016-17.

The NTPC stock closed on Tuesday at Rs 168.50 a share, down Rs 4.85, or by 2.80 per cent, on its previous close on the BSE.

The Centre has a disinvestment target of Rs 72,500 crore for the current fiscal, of which they have raised Rs 8,880 crore through stake sale in six public sector units.