Mumbai/New Delhi: India’s biggest hydroelectric power generator NHPC Ltd received more than Rs17,820 crore of bids, 3.5 times the stock on offer on the first day of its initial share sale.
The utility, which is offering 1.68 billion shares including 559.1 million government shares, got bids for 5.94 billion shares when bidding closed for the day in Mumbai, according to the National Stock Exchange website.
Power producers are accelerating share sale plans as equities rebound from a 2008 slump and are set for their best year in six.
Adani Power Ltd, controlled by Indian billionaire Gautam Adani, raised Rs3,020 crore after getting $11.5 billion (Rs55,085 crore) in bids in a sale ended 31 July.
Utilities, including Indiabulls Power Ltd, may sellshares to raise as much as Rs10,000 crore in the next three months, according to Angel Broking Ltd analyst Girish Solanki.
NHPC, based in Faridabad near New Delhi, plans to raise as much as Rs4,000 crore, while the federal government expects Rs2,000 crore in the initial public offering (IPO), chairman S.K. Garg said 28 July.
The offer would be India’s biggest since Reliance Power Ltd’s record share sale in January 2008.
NHPC is offering shares at Rs30-36 apiece and will use part of the funds to buildseven hydroelectric projects with a combined capacity of 3,240MW, according to the share sale documents.
The issue closes on 12 August. The IPO is being managed by SBI Capital Markets Ltd, Kotak Mahindra Capital Co. Ltd and Enam Securities Pvt. Ltd.