2 IPOs to fetch govt Rs 4,000 cr | business | Hindustan Times
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2 IPOs to fetch govt Rs 4,000 cr

business Updated: Jul 23, 2009 21:07 IST
Anupama Airy
Anupama Airy
Hindustan Times
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The government expects to mop up close to Rs 4,000 crore by partially divesting its stakes in the two big-ticket public issues of state-owned power generation firm NHPC Ltd and petroleum producer Oil India Ltd (OIL) due in the next 50 days.

An investment banker close to the development told Hindustan Times that NHPC Ltd and its book running lead managers have proposed price bands of between Rs 25 to Rs 30 per share or between Rs 30 to Rs 35 a share.

“These two price bands—one which is a conservative on pricing as against the other which is relatively aggressive—will be considered by the Empowered Group of Ministers (EGOM) at its meeting on Friday to take a decision on the pricing of the
issue,” he said, asking not to be identified.

After the approval, NHPC’s board will take up the matter on Saturday, he said.

The OIL issue in September is likely to be priced between Rs 800 and Rs 900 a share, and generate Rs. 2,000 crore each for the government and the company.

SBI Caps, Kotak Investment Banking and Enam Securities are the three lead managers for the NHPC issue. For OIL's IPO, the lead managers include Citigroup, HSBC, Morgan Stanley and J M Financial.