New Delhi: State-owned National Hydroelectric Power Corporation (NHPC) on Thursday kicked off the disinvestments process in power sector PSUs by filling a draft prospectus with market regulator SEBI for its public offer.
The Company proposes a Public Issue of up to 1,676,049,945 Equity Shares (“Issue”).
While the Government would divest 5 per cent of its stake in the corporation, NHPC would be issuing 10 per cent fresh equity in the market.
The Issue comprises a Fresh Issue of up to 1,117,366,630 Equity Shares by NHPC and an Offer for Sale of up to 558,683,315 Equity Shares by the President of India, acting through the Ministry of Power, Government of India, and includes a reservation of up to 26,538,000 Equity Shares for subscription by eligible employees.
Post IPO, Government's stake in the PSU would come down to about 86.30 per cent, sources said.
Earlier, the UPA Government had halted the disinvestments process in PSUs giving into intense pressure from allies, including the Left parties and DMK.
NHPC has a paid-up capital of Rs 10,600 crore and an authorised share capital of Rs 15,000 crore.
The corporation is planning to hit the capital market through 100 per cent book-building process by June this year, sources said.
NHPC has appointed Enam Financial Consultants Pvt Ltd, Kotak Mahindra Capital Company and SBI Capital Market Ltd as lead managers to the issue and the company has proposed to list its shares on both NSE and BSE.
The company is planning to use the net proceeds from the IPO to part finance the construction and development costs of its projects currently under construction, namely, Subansiri Lower, Uri-II, Chamerra-III, Nimoo-Bazgo and Chutak.
At least 60 per cent of the net issue shall be allocated on a proportionate basis to Qualified Institutional Buyers.
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