The Central Government on Monday fixed a price of Rs. 36 per share for the allotment of shares in the Initial Public Offer (IPO) of NHPC meant to raise Rs. 6,048 crore. Out of the total funds raised, one-third would go to the Centre as disinvestment proceeds and the balance would remain with the hydro power utility public sector unit. Power Ministry officials said it had been decided to allot shares at the upper limit of the price band of Rs. 30-36 a share.
The 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. 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 public sector undertaking. The government would get Rs. 2,016 crore while NHPC would retain the remaining Rs. 4,032 crore. With this, the government’s stake would come down to little over 86 per cent in the power PSU.
With the completion of NHPC’s IPO, the disinvestment programme of the United Progressive Alliance Government’s second tenure has started on a high note. This would give impetus to the planned stake sale in the Central PSUs by the government. The previous tenure of UPA saw listing of three power sector PSUs — PFC, PGCIL and REC.