State-owned National Hydro Power Corporation (NHPC) likely to launch its initial public offer (IPO) in January-March quarter of this fiscal.
Company?s chairman and managing director SK Garg said, ?We are waiting for the appointment of independent directors by the government and hope to come out with the IPO in the last quarter of the current financial year.? He was speaking to reporters on the sidelines of a seminar – India Electricity-2007 – here.
NHPC has a mandate to sell up to 24% stake, but it proposed to offer 10% to the public, and an additional 5 % disinvestment of government stake, he said.
The company had filed draft documents for its IPO with the capital markets regulator Sebi in April this year. The IPO was proposed to include over 111 crore fresh equity shares and offer for sale of more than 55 crore shares.
NHPC is presently a wholly-owned of the government. Post IPO, government stake in the country?s largest hydroelectric power generating company would come down to about 86%. At the face value, the company expects to mop up around 1,700 crore from the market.
The government had, last December, approved the IPO plans of NHPC and Rural Electrification Corp (REC). REC has also filed a draft red herring prospectus with SEBI. Earlier this week, NHPC signed three memorandum of agreements with Power Finance Corporation for Line of Credit (LoC) aggregating to Rs 3,000 crore for project financing of three projects. The company proposes to add a capacity of 5,300 mw in the 11th Plan.