Friday, March 7, 2008

NHPC May Come Up With IPO In July-August

NEW DELHI: Having missed the opportunity last year to hit the market, power sector giant NHPC is likely to approach market regulator SEBI by May for its Initial Public Offer.

"We are waiting for the appointment of independent directors... We hope to have them on the Board soon as the names have already been forwarded and are under process. The government has extended all support," NHPC Chairman and Managing Director S K Garg told media.

"We should be hitting the market around July-August this year and submit revised draft prospectus with SEBI, based on current fiscal's financial performance on March 31," he added.

NHPC, which has a paid up capital of Rs 11,500 crore, is likely to come out with a public offer of 167 crore shares, which would add 10 per cent as fresh equity besides five per cent disinvestment. The shares would be face value of Rs 10 each.

The proceeds from IPO would be used to part finance the Rs 28,000 crore expansion plan of NHPC, which has set an ambitious target of becoming a 10,000 MW power generation company during the 11th plan period.

This will be the biggest IPO in the power sector with 167 crore shares on sale, officials said.

Asked about the premium the company was expecting, Garg declined to comment, saying it was too early to comment but exuded confidence of investors' faith on the PSUs as it happened in case of Rural Electrification Corporation (REC), whose IPO was over subscribed by more than 30 times despite uncertainty in the stock market, especially on IPO front.

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