NHPC debuts on a dull note

With bears calling the shots in the stock markets,state-run hydro power generator NHPC made a lackluster debut on the...

With bears calling the shots in the stock markets,state-run hydro power generator NHPC made a lackluster debut on the bourses and settled with just two per cent gain over its issue price on the Bombay Stock Exchange.

The NHPC shares settled at Rs 36.70,just 70 paise or 1.94 per cent above its issue price of Rs 36 on the Bombay Stock Exchange.

The overall weakness in the market due to global cues cast a shadow on the listing of NHPC. Moreover,as the price of the scrip is not under-valued,there was no rush of investors trying to enter at low levels,analysts said.

NHPC gave Investors meagre returns on its listing day, Bonanza Portfolio Assistant Vice President Research Avinash Gupta said.

The scrip surged to an intra-day high of Rs 39.75,up 10.42 per cent over its issue price of Rs 36 within minutes of opening trade. The overall weakness in the broader market and the lack of investor interest led NHPC to lose ground and it plunged to an intra-day low of Rs 36.60.

Despite the disappointing debut,the scrip remained one of the top traded counters with over 70.23 crore shares changing hands on both the bourses. The BSE Sensex which dropped 256 points on Monday,fell another 115 points to settle at 15,551 on Tuesday.

NHPC,which came out with an initial public offer IPO last month raised over Rs 6,000 crore after getting subscribed nearly 24 times. It marks the second biggest public offering in the country8217;s history after Reliance Power.

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The company would use the IPO proceeds to part fund its ongoing investments for 11 projects,which are at different stages. It also plans to add 14,000 MW power by 2020.

Meanwhile,OIL India Ltd will hit the capital market with on September 7 and close on September 10. The company has fixed the price band for its forthcoming initial public offering IPO between Rs 950 and Rs 1,050 per equity share. The company,a wholly owned government subsidiary,will raise Rs 2,777 crore at the upper end of the price band by diluting a 11 per cent stake.