The Hindu Business Line : NHPC IPO only next fiscal

New Delhi, Feb. 19 National Hydroelectric Power Corporation (NHPC) is likely to come out with its initial public offering (IPO) only by early next fiscal as the company is still awaiting the appointment of the requisite number of independent directors on its board by the Government.

“The IPO is likely to come in the first quarter of 2008-09 provided the independent directors are appointed by March 2008,” the NHPC Chairman and Managing Director, Mr S.K. Garg, told reporters here on Tuesday on the sidelines of an event.

Draft prospectus

The company had filed the draft prospectus for the IPO in April last year and was hoping to hit the capital market by August 2007. Delays in the appointment of independent directors on the company’s board, as per Clause 49 of SEBI’s listing agreement, has, however, held up the issue.

Mr Garg said the company was prepared to file for a fresh draft prospectus with SEBI, if required. The company currently has seven directors on its board, including the CMD.

The NHPC public offer involves issue of 10 per cent fresh equity in the market, while the Government will piggyback on it and divest 5 per cent of its stake in the corporation.

After the IPO, the Government’s stake in the PSU is slated to come down to about 86.30 per cent. NHPC has a paid-up capital of Rs 10,600 crore and an authorised share capital of Rs 15,000 crore.

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