The Hindu Business Line : NHPC initial public offer in Aug

New Delhi, July 9 State-owned hydropower major NHPC Ltd is set to hit the market with its initial public offering next month. “NHPC’s IPO should come in August… The public offers of other power companies will depend on the response to the NHPC issue,” the Power Secretary, Mr H.S. Brahma, told reporters on the sidelines of an industry conference.

Mr Brahma, however, said that his Ministry is currently not considering an IPO or a FPO (follow-on public offering) for any other power company.

“NHPC has filed the updated prospectus for its IPO with the SEBI. The company officials have been conducting roadshows for the last two days. They will soon be going to Hong Kong and Singapore,” he said.

The company will offer 10 per cent of its equity in the proposed float, while the Government will divest a five per cent stake of the 100 per cent it currently holds. NHPC plans to offer 167 crore shares with a face value of Rs 10 each, with the premium to be decided through the book-building process.

Investment

The company filed the draft red herring prospectus with SEBI on August 6, last year. NHPC had earlier filed the DRHP in April 2007 but it was turned down by the market regulator as the company did not have the required strength of independent directors on its board then.

The hydropower major is planning an investment of Rs 28,000 crore in the current Five-Year Plan period (2007-12) to increase its installed capacity to over 10,000 MW from 5,200 MW now. The proceeds from the IPO will be partly used to finance expansions.

NHPC, which has a paid-up capital of Rs 11,500 crore comprising 1,150 crore equity shares of Rs 10 each, clocked an EPS of Rs 0.96 in March 2009.

The only listed hydropower firm, private sector utility Jaiprakash Hydro Power Ltd, is trading at over Rs 78, above its March 2005 IPO price of Rs 32.