PTI

New Delhi: State-run hydro power producer NHPC, which was planning to come out with a Rs1,670 crore initial public offer, is witholding the offer the time being.

“NHPC is ready to hit the capital market as all governmental approvals have been accorded. They are waiting for the right opportunity to enter the market, the company has told the ministry that as the market improves they will announce the IPO,” Power Secretary Anil Razdan told PTI.

The company had earlier scheduled to hit the market between 13 - 17 October to raise Rs1,670 crore worth fresh equity besides premium.

NHPC Board had approved the IPO together with 5% disinvestment of government stake in the first week of August.

Asked whether NHPC has filed the final prospectus with Sebi, company officials said it would be submitted along with replies to the queries raised by the market regulator.

This is the second time that NHPC would be forced to defer the IPO. First time, last year when the company had to shelve its plans as independent directors were not on the Board and now due to the choppy market conditions.

NHPC, which accounts for 3.7% of country’s total power generation capacity, targets to double its capacity by 2012 from the present 5,200 MW and has outlined expansion plans worth Rs28,000 crore.

The company has also proposed to come out with a public issue of about 111.82 crore fresh shares and 55.91 crore existing shares of Rs 10 each at a premium that is expected to fetch the company about Rs 5,500 crore and government about Rs 2,800 crore.