New Delhi: Having missed the opportunity last year to hit the market, power sector giant NHPC is likely to approach market regulator Sebi by May for its initial public offer.
“We are waiting for the appointment of independent directors... We hope to have them on the Board soon as the names have already been forwarded and are under process. The government has extended all support,” NHPC chairman and managing director S K Garg told PTI.
“We should be hitting the market around July-August this year and submit revised draft prospectus with Sebi, based on current fiscal’s financial performance on 31 March,” he added.
NHPC, which has a paid up capital of Rs11,500 crore, is likely to come out with a public offer of 167 crore shares , which would add 10% as fresh equity besides 5% disinvestment. The shares would have a face value of Rs10 each.
Proceeds from the IPO would be used to part finance the Rs28,000 crore expansion plan of NHPC, which has set an ambitious target of becoming a 10,000 MW power generation company during the 11th plan period.
This will be the biggest IPO in the power sector with 167 crore shares on sale, officials said.
Asked about the premium the company was expecting, Garg declined to comment on the premium the company was expecting, but said investors had faith in the PSUs as could be seen by the fact that Rural Electrification Corporation’s IPO was over subscribed by more than 30 times despite uncertainty in the stock market, especially on the IPO front.