NHPC IPO Closing on August 12, Views, Analysis, Opinions

Detailed analysis can be found at sureshkaimal.in

National Hydroelectric Power Corporation (NHPC) IPO will be open for subscription today and is one of the most awaited IPOs in recent days. NHPC operates mainly in North and North-Eastern states and This miniratna is expected to get orders from countries like Bhutan and Nepal. This is a first PSU IPO after 17 months (REC is the last IPO – February, 2008). Indian government will get Rs. 2,000 crore by divesting its 5% stake in NHPC while company will get around 4,000 crore from this IPO.

NHPC had earlier filled a draft red herring prospectus in April 2007, but it was turned down by market regulator Sebi, as the company did not have the required strength of independent directors on its board then. Later, the company again filed the IPO papers on August 6, 2008, but scrapped the plan due to poor market conditions.

Details of the IPO are as under:

• Books Open : Friday, 7th August 2009
• Books Close : Wednesday, 12th August 2009
• Price Band : Rs.30- Rs.36.
• Lot Size : 175 x multiples of 175 Equity Shares
• Issue Size : Primary offering of 1,67,73,74,015 Equity shares (Rs.5032.12 Crs.)
• Employee Reservation : 4,19,34,350 shares
• Net Issue Size : 1,63,54,39,665 shares
• QIB Book : 98,12,63,799 shares
• Non Institutional Portion : Up to 16,35,43,966 shares
• Retail Book : Up to 49,06,31,900 shares