NHPC gets board`s nod for initial public issue

The board of state-owned hydro power generator NHPC on Tuesday approved the proposed initial public offering (IPO) of the company to raise funds for its future expansion.

“We will submit the draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) in 1-2 days,” said S K Garg, chairman and managing director, NHPC.

The company would sell around 167 crore equity shares amounting to 10 per cent of the post-issue equity capital to the public. In addition, the government is also planning to divest five per cent of its stake in the company.

The company has appointed SBI Capital Markets as the lead manager for the public offer, while Kotak Mahindra Capital and Enam Securities would be the other lead managers.

When asked what valuation the company was looking through the proposed IPO, Garg refused to comment saying it has not been decided yet. NHPC had earlier tried to come out with an IPO in April 2007, but shelved it.