Mumbai: “Indian state-run power producer NHPC Ltd has deferred plans for an initial public offering worth about $700 million because of turbulent market conditions,” two bankers with direct knowledge of the matter said.
Nearly a dozen Indian companies have pulled or deferred offerings this year as the local stock market fell more than 35%, denting investor demand.
“It is called off for now. We will have to wait and watch. The mood in the market is not up to it,” said one banker, who could not be named as he was not authorised to speak to the media.
NHPC Chairman S.K. Garg said: “I have no comment to offer.”
The company had planned to use the IPO proceeds to partly fund construction of at least six hydropower plants.
SBI Capital markets, Enam Financial and Kotak Mahindra Capital Co were the lead arrangers for 1.67 billion-share offer, which represented 13.6% of the post issue capital.
“NHPC had planned to launch the offer in late October after getting the regulator’s approval earlier this month,” the bankers said.
It had initially targeted to list in the first half of 2008 but was delayed because of statutory requirement to have enough independent directors on board. The company revived IPO plans in August by refiling the draft prospectus with the regulator.
ICICI Securities, a unit of No. 2 lender ICICI Bank, JSW Energy and Sterlite Energy are among firms that had delayed IPO plans worth a combined $4.1 billion this year amid poor markets, according to Thomson Reuters data.
Indian IPO proceeds fell 7% to $4.3 billion from 29 deals in the six months to June, the data showed.
After a $3 billion offering, India’s largest, from Reliance Power in January, offerings have declined sharply in every month.