September 08, 2008

NHPC may float IPO in July or August 2008

PTI reported that National Hydroelectric Power Corporation is likely to approach market regulator SEBI by May 2008 for its initial public offer.

Mr SK Garg CMD of NHPC said that "We are waiting for the appointment of independent directors and 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. We should be hitting the market around July or August 2008 and submit revised draft prospectus with SEBI, based on current fiscal's financial performance on March 31st 2008."

NHPC, which has a paid up capital of INR 11,500 crore, is likely to come out with a public offer of 167 crore shares, which would add 10% as fresh equity besides 5% disinvestment. The shares would be face value of INR 10 each.

The proceeds from IPO would be used to part finance the INR 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.