>> Thursday, July 9, 2009
It has earmarked an investment of Rs28,000 crore in the current XIth Five-Year Plan (2007-12) to become an over 10,000 MW company.
Acting on the government’s disinvestment plans, state-run NHPC will hit the market with its initial public offering of shares to mop up Rs1,670 crore next month.
“NHPC’s IPO will come in August; the company has already started the roadshows for the same,” power secretary H S Brahma told reporters in Delhi on Wednesday.
The company’s public offer will account for 10% of its present equity, while the government will divest a 5% stake of the 100% it currently holds.
NHPC plans to issue fresh equity of Rs1,670 crore through the IPO, and it plans to bring 167 crore shares of a face value of Rs10 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 6 August 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 Rs28,000 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.
Source : Live Mint