New Delhi: National Hydroelectric Power Corporation will launch its initial public offer as planned sometime this year despite a volatile stock market, power secretary Anil Razdan said on 4 March 2008.
Last year, NHPC’s chairman said the company planned to sell a 10% stake to the public.
Finance minister P Chidambaram said during his budget speech on 29 February that the government expects to receive Rs1,165 crore during FY 2008-09 by way of selling stakes in PSU firms like Rural Electrification Corp and NHPC.
Razdan told reporters that state-run companies were financially strong and the government had no plans to reschedule the planned offer. He did not disclose the amount that would be raised from the stake sale.
Asian stocks, including Indian shares, have witnessed volatility in recent weeks on growing concerns about the global impact of a US slowdown this year. India’s main stock index Sensex dropped 5.1% on 3 March.
The primary market was hit last month by withdrawals of two initial public offerings in less than 24 hours, with Emaar MGF Land and Wockhardt Hospitals shelving their issues due to market turmoil.
But the country’s largest lender State Bank of India in mid-February opened subscriptions for a Rs16,736 crore rights issue.