NHPC Powering Ahead With IPO

Under the leadership of SK Garg, NHPC is placed to give tough competition to its PSU peer NTPC. About a decade ago there were talks doing the rounds that NTPC will take over NHPC but now the times have changed not only in terms of power generation but also in terms of fetching almost same amount of money from public to fund its expansion plans. NHPC will dilute 24 per cent stake in the IPO, which will be launched between January-March next year.

"We have a mandate for selling 24 per cent, but in the last quarter of this fiscal we hope to launch an initial public offer for 10 per cent and an additional five per cent disinvestments of government stake in the firm," said SK Garg, CMD, NHPC.Right now the company is fully owned by the government and with the paid up capital of Rs10,600 crore of NHPC and going by the face value, the IPO of 15 per cent would raise a minimum of Rs 1,700 crore and the fundamentals of NHPC may attract a huge premium for its IPO.

Present capacity of NHPC is 4,300 MW and it plans to add another 5,200 MW in Eleventh Plan. It has also lined up 14 projects to augment its generation capacity and that is not all. NHPC has well laid plan for funding its capex. It has outlined a capital expenditure of about Rs 30,000 crore and government's budgetary support would be to the tune of Rs 6,000 crore. It already has two lines of credit worth Rs 9,000 crore with LIC.

IPO Closing Today

1) Consolidated Construction Consortium Ltd.

Opening Date: 18/09/2007
Closing Date : 21/09/2007

2) Koutons Retail India Ltd.

Opening Date: 18/09/2007
Closing Date : 21/09/2007

IPO Opening Today

1) Consolidated Construction Consortium Ltd.

Opening Date: 18/09/2007
Closing Date : 21/09/2007

2) Koutons Retail India Ltd.

Opening Date: 18/09/2007
Closing Date : 21/09/2007

Tata Motors Mulls IPO For Ancillary Biz

Investors are unhappy with the Tata Motors stock and Tata Motors management is also aware about this fact.

And an aggressive bid for Jaguar and Land Rover will make markets further unhappy, but here is something that could get investors smiling.

Tata Motors is considering IPO for its ancillary subsidiaries-HV Transmissions and HV Axles. The company may also consider a strategic stake sale in ancillary units before IPO.

Tata Motors is planning to de-merge its ancillary subsidiaries by this fiscal-end, moreover it is also eyeing international alliances and external customers for its two divisions.

HV Transmissions is Tata Motors'' Gear Box Division and HV Axles is its Heavy Axle Division, Analysts see some rich valuations in these ancillary units.

HVAL and HVTL revenues are seen in range the range of Rs 200-250 crore and market capitalization for these ancillary units were seen at Rs 2,000 crore each.

Tata Motors stock has given a negative return of 20 per cent in the last one year while the Sensex posted a positive return of 30 per cent.

Analysts see value-unlocking proposal as a positive move by Tata Motors, however they are a bit worried about the fact that auto ancillaries companies are not doing too well on Dalal Street.

IPO Closing Today

1) Power Grid Corporation of India Ltd.

Opening Date: 10/09/2007
Closing Date : 13/09/2007

IPO Closing Today

1) Allied Computers International (Asia) Ltd.

Opening Date: 07/09/2007
Closing Date : 12/09/2007

2) Dhanus Technologies Ltd.

Opening Date: 10/09/2007
Closing Date : 12/09/2007

IPO Closing Today

1) Kaveri Seed Company Ltd.

Opening Date: 06/09/2007
Closing Date : 11/09/2007