New Delhi: Public sector National Hydro- Electric Power Corporation (NHPC) said on 20 September its initial public offering (IPO) to dilute its stake would be launched between January and March next year.
“We are waiting for the appointment of independent directors by the government and hope to come out with our initial public offer in the last quarter of the current financial year,” NHPC chairman and managing director S K Garg told reporters on the sidelines of the India Electricity 2007 seminar here.
NHPC has a mandate to sell up to 24% stake, but it proposed to offer 10% to the public, and an additional 5% disinvestment of government stake, he said.
Post IPO, government stake in the country’s largest hydroelectric power generating company would come down to about 86%.
At face value, the company expects to mop up about Rs1,700 crore from the market.
The company, wholly-owned by the government, had filed draft documents for its IPO with the capital markets regulator Sebi in April this year. The IPO was proposed to include over 111 crore fresh equity shares and offer for sale of more than 55 crore shares.
The government had, last December, approved the IPO plans of NHPC and Rural Electrification Corp (REC). REC has also filed a draft red herring prospectus with Sebi.
Earlier this week, NHPC signed three memorandum of agreements with Power Finance Corporation for Line of Credit (LoC) aggregating to Rs3,000 crore for project financing of three projects. The company proposes to add a capacity of 5,300 MW in the 11th five year plan.