NHPC to sell 1,670 million shares; IPO likely in July-August

Mumbai: National Hydropower Corporation (NHPC) proposes to approach market regulator Sebi with plans to sell 1,670 million shares in an initial public offer by May.

The power sector giant expects to hit the market by July-August this year.

NHPC, which has a paid-up capital of Rs11,500 crore, proposes to sell 1,670 million shares in the biggest IPO in the power sector, officials said.

The IPO would add 10 per cent as fresh equity in NHPC besides five per cent disinvestments. The shares would have a face value of Rs10 each.

NHPC, which missed the target date for IPO last year, is currently waiting the appointment of independent directors, said chairman and managing director S K Garg.
 
" 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," he added.

"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 said.

He said the proceeds from IPO would be used to part finance the Rs28,000 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.

Garg, however, declined to comment on the premium the company was expecting.