New Delhi, Nov. 4: Three power firms — NTPC, REC and Satluj Jal Vidyut Nigam — will hit the markets before the end of this fiscal, power minister Sushil Kumar Shinde said today.

“The government has decided to divest its stake in three firms and it will be done before the end of this fiscal,” he said.

The government will offload 5 per cent in NTPC and 10 per cent in Satluj. In REC, it will divest a 5 per cent stake, and the firm will come out with a follow-on public offer for another 15 per cent.

Uma Shankar, chairman of REC, said, “We plan to hit the markets in February and raise about Rs 3,400 crore. Of this, Rs 2,500 crore may go to REC and the government may get Rs 900 crore.”

“There is appetite for PSU stocks in the market and the issue will do well,” he added. After the follow-on offer, the government’s stake in REC will come down to 66.8 per cent from 81.82 per cent.

Officials said the government would be able to raise over Rs 8,800 crore by divesting a 5 per cent stake in NTPC.

The government’s shareholding in the company would come down to 84.5 per cent after the divestment.

Satluj Jal Vidyut Nigam is a 75:25 joint venture between the Centre and Himachal Pradesh government. After the partial divestment of its stake, the Centre’s share will come down to 65 per cent, while the state’s share will remain at 25 per cent.