Aug 6, 2009

NHPC Ltd - IPO Review

NHPC Ltd, a Govt of india enterprise involved in hydro electric power generation was started by govt with objective to hydroelectric and renewable power generation project. It is the largest hydroelectric in india.

NHPC ltd is coming out with an IPO in the price band between range of Rs 30 and Rs 36 per equity share for its initial public offering (IPO) of 1,67,73,014 equity share of Rs 10 each for cash at a price to be decided through a 100 per cent book-building process.

Business Overview

- 13 Operating Station with installed capacity of 5,175 MW.
- Construction of 11 projects which will increase the capacity by 4622 MW

IPO Objective

- Finance the On going projects & utilize the funds for other identified projects in the future.

- Amount Utilized towards issue expenses

Investment Rationale

- Huge Capacity expansion in pipeline with target of reaching 9500 MW by 2012
- Initiative Taken by govt of india in 11th & 12th year plan to boost hydroelectric power development
- Has a soundtrack record in hydro power generation
- Has Signed long term power purchase agreement with Customers
- plans to expand current capacity through JV & MOU

IPO Details

The issue comprises a fresh issue of 1,11,82,49,343 Equity Shares by NHPC and an offer for sale of 55,91,24,672 Equity shares
by the President of India acting through the Ministry of Power, Government of India.

The issue comprises a net issue to the public 1,63,54,39,665 Equity Shares and a reservation of 4,19,34,550 Equity Shares for subscription by eligible employees at the issue price

Duration

The issues opens on August 7 and closes on August 12.

Stocktrendz put subscribe on NHPC ltd

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