NHPC IPO subscribed over 16 times

NHPC IPO subscribed over 16 times

Mumbai: The initial public offer of hydro power producer NHPC got subscribed over 16 times with most of the bids coming in from institutional investors.

The offer, which is expected to mobilize up to Rs6,000 crore making it the second largest IPO in the country till date after Reliance Power’s, will close on Wednesday.

The issue received bids for over 2,762.99 crore shares against 167.73 crore shares on offer, as per the data available on the National Stock Exchange.

Marketmen said the portion reserved for qualified institutional investors and high networth individuals got subscribed nearly 20 times each, while the retail investors portion was subscribed over three times the shares on offer.

“The subscription by institutional investors is likely to go up further and the retail participation would also increase towards the end of bid timing," SMC Capitals equity head Jagannadham Thunuguntla said.

Analysts said being a public sector firm, NHPC is getting attention from various categories of investors. This is the first stake sale by a state-run company in the last one and a half years, after REC raised over 1,600 crore in February.

The price band of the issue has been fixed between 30 -36.