Hydro power firm National Hydroelectric Power Corporation (NHPC) Ltd is likely to launch its much-awaited Rs 1,670-crore initial public offer (IPO) by August to part finance its expansion plans.
“We are working on the NHPC IPO ...Hopefully it would hit the market in August,” a senior power ministry official said. NHPC plans to issue 10 per cent of its new equity shares in the public offer, while the government alongside will divest its five per cent stake in the company.
According to the listing norms by market regulator Sebi, independent directors should form 50 per cent of a board which is headed by an executive chairman.
To meet Sebi norms, NHPC should have seven independent directors on board before it can go to the market. “There are six independent directors on NHPC’s board, once the seventh member is finalised it can hit the capital market,” he said.
NHPC plans to raise Rs 1,670 crore fresh equity through IPO and it plans to bring 167 crore shares of face value of Rs 10 each, which would be offered at a premium to be decided through book building process.
With the Congress party getting a clear mandate, the Manmohan Singh-led government is likely to push for divestment of the government’s stake in blue-chip public sector firms to garner resources for meeting flagship schemes.
The government will also divest its 5 per cent stake as part of the disinvestment. The company filed the draft red herring prospectus (DRHP) with market regulator Sebi on August 6, 2008.
