NHPC plans to raise $334 Million through IPO
By siliconindia   |   Thursday, 04 June 2009, 23:55 IST   |    2 Comments
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NHPC plans to raise $334 Million through IPO
Bangalore: Hydro power firm National Hydroelectric Power Corporation (NHPC) is launching its Rs 1,670 crore ($334 million) initial public offering (IPO) by August to part finance its expansion plans. NHPC plans to issue 10 percent of its new equity shares in the public offer, while the government will part from its five percent stake in the company. "We are working on the NHPC IPO. Hopefully it would hit the market in August," a senior power ministry official said. According to the listing norms by market regulator Securities and Exchange Board of India (SEBI), independent directors should form 50 percent of a board which is headed by an executive chairman. Also, NHPC should have seven independent directors on board before it can go to the market. So far, there are six independent directors and once the seventh one is finalized NHPC can hit the capital market. NHPC plans to raise Rs 1,670 crore fresh equity through IPO and it plans to bring 167 crore shares of face value of Rs 10 each, which would be offered at a premium to be decided through book building process. The government will also divest its 5 percent stake as part of the disinvestment. The company filed the draft red herring prospectus (DRHP) with market regulator SEBI on August 6, 2008.

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