NHPC, Oil India may hit market by August: reports
04 Jun 2009
The finance ministry is assessing market conditions for initial public offers (IPOs) by public sector firms National Hydroelectric Power Corporation (NHPC) and Oil India, reports quoting official sources said.
These IPOs, however, are unlikely to hit the market before August as the market is yet to fully recover from the the slump, reports said.
"Market conditions are not ripe at this time. We will watch for the right time. It will not be done before August," a report quoted a senior finance ministry official as saying.
NHPC, which is wholly-owned by the Government of India, plans to issue 1,670 million fresh equity shares and dilute 5 per cent of government's holding in the company.
Oil explorer and refiner Oil India Ltd plans to issue 2.6 crore million shares, resulting in 10 per cent dilution of government equity.
Valuations are yet to be finalised and may vary with the timing of the issue, the reports said.
Both the companies had received all necessary regulatory approvals in September last year.
The government has time till 10 September for public offers of Oil India and 17 September for NHPC's public offer. If it fail to meet the deadline, the two companies will have to again approach market regulator SEBI for a fresh approval.
