FPO: follow on public offer.

NTPC Limited (NTPC), India’s largest power generation company, has come out with a follow-on public offer (FPO) of 412,273,220 equity shares of Rs. 10 each at a floor price of Rs. 201 per share which is at a discount of ~Rs. 5 to the ruling market price, with the Government of India looking to raise in excess of Rs. 82.87 bn by divesting 5% of its stake in the company.

Fundamentals:-
NTPC is the best defensive play in the Indian power sector considering its position of market leadership, strong balance sheet, high credit rating, efficient operational capabilities and stable cash flows. At the floor price of Rs. 201 for the issue, the stock appears at a discount. They got the highest IIP data for year 2009 in Asia.

Technicals :
Expect some Resistance @ 219-220 breaking which targets 240 easily. if it sustains above 232 with some good volumes......i am expecting 280-300 Rs on charts.

Moral: this stock is is best pic for the long term investor. its most defensive invest option. A slow moving & slow falling stock, but very steady.
Instead of getting it from FPO i would prefer it to buy directly from market at current price.