The Hindu Business Line : NHPC files prospectus for public offer

New Delhi April 5 State-owned National Hydroelectric Power Corporation (NHPC) has filed a draft prospectus with market regulator SEBI for its public offer, which would mark a revival of the Government's stalled disinvestment process in public sector enterprises.

The Corporation would be issuing 10 per cent fresh equity in the market, while the Government would piggyback on the proposed initial public offer in June and divest 5 per cent of its stake in the company.

Under the issue, nearly 167.6 crore shares would be on offer, following which the Government's equity in the PSU is expected to come down to 86.3 per cent from 100 per cent at present. The Centre's 5 per cent stake will constitute sale of 55.86 crore equity shares. NHPC is a schedule `A' Enterprise of the Government of India with an authorised share capital of Rs 15,000 crore.

The company would retain proceeds from the sale of fresh equity to part-finance upcoming projects while that from 5 per cent would go to the Government. The UPA Government had halted the disinvestment process in PSUs last year under pressure from its allies, mainly the Left parties and the DMK.

Company officials declined to give estimates of how much money they hoped to raise through the IPO. The issue would be on offer through a 100 per cent book-building process, wherein at least 60 per cent of the net issue would be allocated on a proportionate basis to Qualified Institutional Buyers.

The company has also made a provision for Employees Stock Option to allocate over 2.65 crore shares for eligible employees. NHPC has appointed Enam Financial Consultants Pvt Ltd, Kotak Mahindra Capital Company and SBI Capital Market Ltd as lead managers to the issue and the company has proposed to list its shares on both NSE and BSE. NHPC is currently engaged in the construction of 12 new hydroelectric projects in Jammu and Kashmir, Himachal Pradesh, Arunachal Pradesh, Assam, Sikkim and West Bengal, which would increase its total installed capacity by 5,192 MW. The company currently has an installed capacity of 3,755 MW.