NHPC to float IPO worth 167 crore equities on Friday

NHPC Executive Director Kamal Kapoor, Director-technical DP Bhargava at a press conference in Bangalore on Tuesday. KPN

Public sector National Hydroelectric Power Corporation (NHPC) is entering the capital market with an initial public offering (IPO) of 167.73 crore equity shares of Rs 10 each for cash through a 100 per cent book-building process.

The price band for the issue has been fixed between Rs 30 and Rs 36 per equity share. The issue opens on August 7, 2009.

Briefing reporters here, NHPC Executive Director (Operations & Maintenance) Kamal Kapoor said the issue also includes the offer for sale of 55.91crore equity shares by the Centre, as part of the divestment process. Post issue the Centre’s holding in the company would come down to 86.36 per cent, he added.

The company, he said, expects to raise Rs 6,000 crore from the issue, of which Rs 4,000 crore will be used to finance projects under construction, while Rs 2,000 will be given to the Centre.

On the ongoing activities, Kapoor said 11 projects of 4,622 MW capacity are currently under construction at various stages. “The company is awaiting government’s nod for five more projects with a capacity of 4,565 MW and certain joint venture projects having capacity of 2,166 MW,” he added.

While the current installed capacity is 5,175 MW, by 2013 end, the total installed capacity will be 10,000 MW, he said, adding, most of the under construction projects are going to be on schedule.

It is also diversifying into non-hydro power projects and Madhya Pradesh government has mandated the company to set up a 1,000 MW thermal power plant at Khandwa.
Internationally, the company is surveying project proposals in Bhutan, Myannmar and Nepal.

NPHC has received proposals for three projects worth capacity of 3,000 MW in Bhutan and two projects with capacity of 1,800 MW in Myannmar. For the Bhutan project a Detailed Project Report (DPR) has already been done.

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