NHPC IPO to hit the stock market around Diwali

State-run National Hydro Power Corporation Ltd (NHPC) planned to float its IPO around Diwali in October to raise Rs 1,680 crore from stock markets to meet financial requirements of ongoing expansion work.     

The company would issue 168 crore shares in the capital market at the rate of Rs 10 at face value per equity comprising 10 per cent fresh shares and five per cent shares to be divested by the government, NHPC Chief Managing Director S K Garg told a select group of reporters here today.     

Garg, who was here to review hydro-electric power plants, both functional and under-construction in Sikkim, said that the price band of the NHPC DS shares would be decided soon.     

He said that the company has already appointed its merchant bankers including Kotak Mahindra Bank and SBI Capital to deal with various aspects of the IPO.     

The capital, being generated from the public issue, would be utilised for the ongoing expansion work and completion of 10 under-construction hydel projects with an expected generation capacity of about 10,000 Mw under the 11th five-year plan, the NHPC CMD said.     

On the capital requirement for its ongoing power projects, Garg said that NHPC required Rs 28,000 crore for construction of the 10 under-construction projects under the 11th five-year plan out of which Rs 17,000 crore was being generated through borrowing, while Rs 11,000 crore would be raised from the equity market.