The Hindu Business Line : NHPC public issue likely in August

New Delhi, April 30 National Hydroelectric Power Corporation will enter the capital market with its initial public offering (IPO) to raise funds to expand its generation capacity and also will enter new areas such as trading, power development including forward, backward and horizontal integration ancillary and other allied industries.

For entering into these new areas the Memorandum of Association of the company has already been amended.

The Power Secretary, Mr Anil Razdan, said the IPO of NHPC is likely to hit the market by August this year. Though the power PSU has been allowed to raise funds up to 24 per cent of its paid-up capital, the initial offer would be a mix of 10 per cent fresh shares to be issued by the company and selling of 5 per cent Government stake. Road shows would begin in May, Mr Razdan said.

Net profit up

The issue will comprise of 16.7 million shares of Rs 10 each and post issue Government holding would come down to 86 per cent. The company on Wednesday reported a net profit after tax (PAT) of Rs 1,002 crore for 2007-08, up Rs 77 crore over Rs 925 crore in 2006-07.

The company also posted an all time high sales turnover of Rs 2,311.47 crore as against Rs 1,962.76 crore last fiscal, the company said in a release.

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NHPC public issue likely in August