NHPC IPO of 1670cr will be in market next month…

Posted by stockmarket

July 8, 2009

The season of IPO seems back after slowdown & break. “NHPC’s IPO will come in August; the company has already started the roadshows for the same,” Below are highlights of NHPC.

· Acting on the government’s disinvestment plans, state-run NHPC will hit the market with its initial public offering of shares to mop up Rs.1670 crore next month.

· The company’s public offer will account for 10 per cent of its present equity, while the government will divest a five per cent stake of the 100 per cent it currently holds.

· NHPC plans to issue fresh equity of Rs 1,670 crore through the IPO, and it plans to bring 167 crore shares of a face value of Rs 10 each, 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 on August 6 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, which it now has.

· It has earmarked an investment of Rs 28,000 crore in the current XIth Five-Year Plan (2007-12) to become an over 10,000 MW company from 5,200 MW now.

The proceeds from the IPO will be partly utilised to finance expansions.