NHPC IPO opens on 7 August 2009

NHPC will raise nearly Rs 6,000 crore comprising of 5% divestment of government stake and infusion of 10% fresh equity

State-run power company NHPC plans to raise nearly Rs 6,000 crore through sale of shares in a price-band of Rs 30-36 in an IPO (initial public offer).

The issue will open on 7 August 2009 and close on 11 August 2009. The company would sell 168 crore shares comprising of 5% divestment of stake by the government and infusion of 10% fresh equity.

NHPC has a current capacity of 5175 megawatts (MW) and plans to have a capacity of 9600 MW by 2013.

NHPC's net profit rose 7.1% to Rs 1,075.22 crore on 19.1% rise in sales to Rs 2,671.85 crore in the year ended March 2009 over the year ended March 2008.

This will be the first IPO by a public sector enterprise after the United Progressive Alliance (UPA) assumed office for a second term in May this year. This is also the first stake sale by a state-run company in 17 months after REC went public in February 2008 to raise over Rs 1,600 crore.