New Delhi: State-owned National Hydroelectric Power Corp. Ltd (NHPC) will hit the market next month with its initial public offering (IPO) to mop up Rs1,670 crore.
Power play: Power secretary H.S. Brahma says NHPC has already stared roadshows for its initial public offering. PIB
“The company has already started the roadshows for the same,” power secretary H.S. Brahma told reporters on Wednesday.
The firm’s public offer will account for 10% of its present equity, while the government will divest a 5% stake of the 100% it currently holds.
NHPC plans to issue 1.67 billion shares of Rs10 face value, which would be offered at a premium to be decided through the book-building process.
The company filed the draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India in August last year.
NHPC had earlier filed the DRHP in April 2007, but it was rejected by the market regulator as the company did not have the required strength of non-official directors on its board.
The company has earmarked an investment of Rs28,000 crore in the 11th Plan (2007-12) to become an at least 10,000MW firm from 5,200MW now. Proceeds from the IPO will be partly utilized to fund the expansion.
Meanwhile, the nation’s second-largest state-run explorer, Oil India Ltd (OIL), is expected to launch an IPO in the first week of September.
“We are going ahead with the IPO. Roadshows will be held in August and the offering will open for public subscription in the first week of September,” a company official said.