With new directors, NHPC hopes for IPO okay
The state-run National Hydro Power Corporation plans to apply with the stock market regulator for listing of its shares soon, says the company's top executive.Updated: Aug 04, 2008 22:05 IST
The state-run National Hydro Power Corporation plans to apply with the stock market regulator for listing of its shares soon, the company's top executive said on Monday.
The company's move to tap the capital market comes after the government cleared the appointment of six independent directors to its board, the lack of which had previously prompted the Securities and Exchange Board of India to reject NHPC's application for an initial public offering (IPO).
“After our annual general meeting and board meeting on Tuesday, we would approach the market regulator as all (six) independent directors have been cleared by the government,” S.K. Garg, chairman and managing director, NHPC, told Hindustan Times.
If that happens, NHPC will be the first company to hit the market after the government severed ties with the left parties, whose opposition to diluting government stake in profit-making public sector companies had put the Centre’s disinvestment programme on the backburner.
The company plans to issue 167 crore equity shares of Rs 10 each, comprising 15 per cent of the expanded equity capital of NHPC, in the proposed float.
“The company is making a fresh issue of 10 per cent equity capital and the government is divesting 5 per cent of its existing holding in the company,” Garg said.
The pricing of the issue will be through book-building route, Garg said, adding, “We intend to enter the market by October, subject to market condition.”
The Union Government owns NHPC entirely. The company has a paid-up capital of Rs 11,500 crore, comprising of 1,150 crore equity shares of Rs 10 each. It has an installed capacity of 5,200 mw, which are generated from its 13 hydro-power plants. The company also has as many as 10 hydro-power plants in different stages of construction, which would generate about 4,200 mw of power.
The company is planning to invest Rs 90,000 crore over the next 10 years, and is seeking to increase its generation capacity to 11,000 mw by 2012. The capacity addition accounts for 35 per cent of the total hydro-power capacity in the 11th Five Year Plan.
NHPC is at present implementing the country's largest hydroelectric project, 2,000 MW Subansiri Lower Project in Arunachal Pradesh.