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| UPDATE: NHPC IPO in August to raise Rs 1,670 cr |
| Press Trust of India / New Delhi Jul 16, 2009, 15:04 IST |
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The much-awaited Initial Public Offer of state-owned NHPC to raise Rs 1,680 crore is likely to see light of the day on August 7, next month.
"If everything goes well the IPO (Initial Public Offer) is likely in the first week of August, tentatively August 7," NHPC Chairman and Managing Director SK Garg told reporters in the national capital.
NHPC would infuse 10 per cent fresh equity through this public offer to raise Rs 1,680 crore, while the government will divest its five per cent stake in the company.
It would come up with 168 crore shares of face value of Rs 10 each, which would be offered at a premium through book building process.
As per the SEBI listing norms, independent directors should form 50 per cent of the board which is headed by executive chairman. To meet this criteria, NHPC should have seven independent directors on board before it can go to the market.
The company filed the draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India on August 6, 2008.
NHPC had also filed for DRHP in April 2007 but was not given permission by the market regulator as the company did not have the required strength of non-official directors on board, which it now has.
NHPC also plans to invest Rs 28,000 crore by 2012 to position itself as over 10,000 Mw utility. At present, its generation capacity stands at 5,200 Mw.
The proceeds from the IPO would partly be utilised to finance the expansions.
The public sector company accounts for 3.7 per cent of the country's total power generation capacity.
The company plans to invest another Rs 35,000 crore after the 11th Five-Year Plan (2007-12) for further expansion and is currently implementing the country's largest hydro-electric project, 2,000 Mw Subansiri Lower Project in Arunachal Pradesh.
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