NHPC defers IPO till market condition improves

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State-run hydro power producer NHPC, which was planning to come out with an initial public offer to raise an estimated Rs 1,670 crore, is withholding the offer for the time being.

"NHPC is ready to hit the capital market as all governmental approvals have been accorded. They are waiting for the right opportunity to enter the market (and) the company has told the ministry that as the market improves they will announce the IPO," Power Secretary Anil Razdan said.

The company had earlier scheduled the launch of the offer between October 13 and 17 to raise nearly Rs 1,670 crore worth fresh equity, besides premium.

The NHPC Board had approved the IPO together with 5 per cent disinvestment of government stake in the first week of August.

Asked whether NHPC has filed the final prospectus with SEBI, company officials said it would be submitted along with replies to the queries raised by the market regulator.

This is the second time that NHPC is delaying the launch of the IPO. Last year, the company had to first shelve its plans as the requisite number of independent directors were not on the Board and now due to the choppy market conditions.

NHPC, which accounts for 3.7 per cent of country's total power generation capacity, targets to double capacity by 2012 from the present 5,200 MW and has outlined expansion plans worth Rs 28,000 crore.