New Delhi: The government has fixed a price of Rs 36 a share for the allotment of shares in the initial public offer of NHPC, thus raising Rs 6,048 crore, of which one-third would go to the Centre as disinvestment proceeds and the rest would remain with the hydro power utility PSU.

According to the power ministry sources, the Group of Ministers has decided to allot shares at the upper limit of the price band of Rs 30-36 a share.

The NHPC IPO, in which investors were asked to bid for shares in the price range of Rs 30-36 a share, closed on August 12 with a huge over-subscription of more than 23 times.

NHPC shares are likely to be listed on the bourses in the first week of September, sources said without divulging the exact date.

The shares on sale during the offer included the government’s five per cent equity and 10 per cent of fresh equity issued by the PSU.

The government would get Rs 2,016 crore while NHPC would retain the remaining Rs 4,032 crore. Post IPO, the government’s stake would come down to little over 86 per cent in the power PSU.

With an installed capacity of 4,815 MW, NHPC has 11 projects under construction aggregating to a total capacity of 4,622 MW. The new projects are likely to be commissioned by 2012.

NHPC would use the IPO proceeds to part fund its ongoing investments in 11 projects. It also has plans to add 14,000 MW of power by 2020 for which it has either completed survey of projects or was in the process of surveying several others.

source: Sify Finance

Tags: NHPC IPO, NHPC IPO price, NHPC listing date, NHPC listing price date

Similar Posts:

• REC IPO Price fixed at Rs 105
• Mahindra Holidays’ IPO price fixed at Rs 300 per equity share
• Nu Tek India IPO price fixed at Rs 192/sh
• REC IPO opens Feb 19, price band fixed at Rs 90-105/sh
• NHPC Limited IPO listing date