State-run NHPC has convened a Board meeting tomorrow to approve Initial Public Offer(IPO) together with 5 per cent disinvestment of government stake and may become first PSU to go public after Left parties withdrew support from the UPA government.
"Our board will meet on August 5 to discuss divestment and Initial Public Offer (IPO) for raising Rs 1,670 crore fresh equity for expansion," S K Garg Chairman and Managing Director NHPC said.
The company is hoping to file its revised Draft Red Herring Prospectus (DRHP) with the market regulator Sebi by the end of this month. "All formalities have been completed including appointment of non-official directors. If everything goes as per schedule, we should be hitting the market by September or early October this year depending upon the market condition," Garg said.
NHPC, which accounts for 3.7 per cent of country's total power generation capacity, plans to raise at least Rs 1,670 crore through the IPO to part-fund expansion plans.
The company, which by 2012 targets to double power generation capacity from the present 5,200 Mw, has outlined expansion plans worth Rs 28,000 crore.
It plans to bring 167 crore shares of a face value of Rs 10 each, which would be offered at a premium to be decided through book building process.
The IPO would comprise sale of 10 per cent of fresh equity shares and 5 per cent disinvestment of government equity.