NHPC, state-run hydroelectric power producer has deferred its initial public offering till next year due to weak market conditions.The company had planned to raise nearly Rs 1,670 crore by selling 167 crore equity shares of Rs 10 face-value each.The company's board had approved the IPO along with government's disinvestment of 5 per cent, and filed the Draft Red Herring Prospectus with SEBI for the same.
This deferment of IPO is the second time for the company. Earlier, it has postponed its listing plans last year as independent directors were not on the Board. NHPC proposes to come out with a public issue of about 1,11.82 crore fresh shares and 55.91 crore existing shares of Rs 10 each at a premium. The premium is expected to fetch about Rs 5,500 crore to the company and around Rs 2,800 crore to the government.
The IPO proceeds would be utilized to finance the seven hydro-electric projects of the company, including 44-MW project at Chutak in Jammu and Kashmir along with 2,000 MW Subansiri Lower project in Arunachal Pradesh and 160-MW Teesta Low Dam-IV in West Bengal. NHPC has outlined expansion plans worth Rs 28,000 crore by 2012 and also plans to double its power generating capacity from the present 5,200 MW.
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