NHPC tumbles after board approves buyback

NHPC fell 4.59% to Rs 18.70 at 15:13 IST on BSE after the company said its board approved buyback of equity shares at Rs 19.25 per share.

The announcement was made during trading hours today, 24 October 2013.

Meanwhile, the BSE Sensex was down 45.08 points, or 0.22%, to 20,722.80.

On BSE, 19.75 lakh shares were traded in the counter compared with average volume of 8.64 lakh shares in the past one quarter.

The stock hit a high of Rs 19.90 and a low of Rs 18.20 so far during the day. The stock hit a 52-week high of Rs 29.40 on 20 February 2013. The stock hit a 52-week low of Rs 14.80 on 7 August 2013.

The stock had outperformed the market over the past one month till 23 October 2013, rising 4.81% compared with the Sensex's 4.36% rise. The scrip had also outperformed the market in past one quarter, rising 8.59% as against Sensex's 2.29% rise.

The large-cap company has an equity capital of Rs 12300.74 crore. Face value per share is Rs 10.

NHPC said its board has approved buyback of upto 10% of fully paid up equity capital, which works out to 123 crore equity shares, at Rs 19.25 per share payable in cash for an aggregate amount of Rs 2367.89 crore through tender offer.

The buyback price of Rs 19.25 per share is 2.94% premium to the ruling market price.

Last month a media report suggested that the Government had earlier planned to disinvest 11.36% stake in NHPC through offer for sale (OFS) route in the domestic market. But due to choppy market conditions, the Government changed the plan to buyback of shares.

NHPC's net profit rose 7.5% to Rs 719.93 crore on 14.4% growth in net sales to Rs 1600.51 crore in Q1 June 2013 over Q1 June 2012.

NHPC is a state-run hydro-power utility. The Government of India (GoI) holds 86.36% stake in NHPC (as per the shareholding pattern as on 30 September 2013).

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