The country’s largest hydro power producer NHPC will buy back its shares worth Rs 1,600 crore from the market and the Power Ministry will soon float a Cabinet note for the same.
According to a Power Ministry official, the Cabinet note on NHPC share buyback is ready and will be circulated soon.
The Government had earlier planned to disinvest 11.36 per cent stake in NHPC through offer for sale (OFS) route in the domestic market. It had also selected Credit Suisse and HSBC as merchant bankers to manage the sale of shares.
But due to choppy market conditions, the Government changed the plan to buy back of shares. At present, it holds 86.36 percent stake in NHPC.
NHPC got listed on bourses in 2009 after the Government divested 5 per cent stake, while the company issued 10 per cent fresh equity. The paid-up equity capital of the company, as of March 31, 2012, was Rs 12,300.74 crore.
The Government plans to raise Rs 40,000 crore in the current financial year (2013-14) through disinvestment.
NHPC generates 5,702 MW electricity from 17 hydel stations in the country. As many as seven power stations with a total capacity of 4,095 MW are under construction.
For the April-June quarter of the current fiscal, the company reported more than 7 per cent increase in its net profit at Rs 719.93 crore.
Its total income climbed to Rs 1,619.73 crore during the quarter under review from Rs 1,424.45 crore in the same period a year ago.
The company’s scrip was trading at Rs 17.95, up 2.28 per cent, on the BSE.