NHPC files revised IPO prospectus

Even as telecom giant BSNL is toying with the idea of going public, public sector NHPC Limited, a hydroelectric power generating company, has filed its revised Draft Red Herring Prospectus with Sebi for entering the capital market with an IPO through the book-building route.

The NHPC move has come at a time when a host of companies had shelved their plans to come out with IPOs in view of adverse market conditions. NHPC IPO is likely to be the first from the public sector after the Left parties withdrew support to the UPA government. The board approved the proposed IPO of the company on Tuesday to raise funds for its future expansions and part finance the construction and development costs of certain of identified projects. The public issue of 167 crore equity shares comprises a fresh issue of 111 crore equity shares by NHPC and an offer for sale of 55 crore equity shares by the government.

NHPC had earlier filed the IPO prospectus but withdrew it following some technical objections. 8220;We have submitted the draft red herring prospectus with the Sebi today,8221; said S K Garg, Chairman and Managing Director, NHPC. A Mini Ratna Category I company, NHPC has developed 13 hydroelectric power stations and the total installed capacity is currently 5,175MW.

Meanwhile, the board of state-run BSNL is understood to have proposed to sell 10 per cent of the government8217;s 100 per cent stake in the company through an initial public offer. Discussions are going on for a 10 per cent dilution with the union. The BSNL management had earlier withdrawn IPO plans following opposition from the union.