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Journalism of Courage
The initial public offer of state-run hydro-power producer NHPC Ltd got subscribed over three times on the first day of issue on Friday with most of the bids coming in from institutional investors.
The company received bids for 539.95 crore shares against 167.73 crore shares on offer,thereby garnering demand for 3.22 times the shares on offer,as per data available on the National Stock Exchange.
The portion reserved for qualified institutional buyers got bids for over three times so far,while the retail investors subscribed only 1 per cent of the shares on offer,market sources said.
“Being a public sector firm,NHPC has drawn a lot of attention from various categories of investors,” SMC Capitals Equity Head Jagannadham Thunuguntla said.
The company plans to raise over Rs 6,000 crore from the offering,thereby making it the second biggest public offering in the country till date,after Reliance Power. The price band of the IPO was fixed between Rs 30-36.
Analysts said the retail investor market is abuzz with activity and anticipation with the IPO of NHPC,a Mini-Ratna PSU which generates hydroelectricity.
This is the first stake sale by a state-run company in the last one and a half years,after REC raised over Rs 1,600 crore in February.
