NEW DELHI: National Hydroelectric Power Corporation (NHPC) on Thursday kicked off the disinvestment process with the filing of a draft prospectus with the Securities and Exchange Board of India (SEBI) for its Initial Public Officer (IPO). It would be issuing 10 per cent fresh equity in the market, while the Government would piggy back on it and divest five per cent of its stake in the corporation.

In the post-IPO scenario, the Government's stake in the corporation would come down to about 86.30 per cent.

NHPC has a paid-up capital of Rs. 10,600 crore and an authorised share capital of Rs. 15,000 crore. The corporation is planning to hit the capital market by June. NHPC has appointed Enam Financial Consultants Private Limited, Kotak Mahindra Capital Company and SBI Capital Market Ltd as lead managers to the issue and has proposed to list its shares on NSE and BSE.

The company is planning to use the net proceeds from the IPO to part finance the construction and development costs of its ongoing projects, including Subansiri Lower, Uri-II, Chamera-III, Nimoo-Bazgo and Chutak. The issue is being made through the 100 per cent book-building process, wherein at least 60 per cent of the net issue should be allocated on a proportionate basis to qualified institutional buyers. NHPC had announced a net profit of over Rs. 742 crore on a turnover of Rs. 1,714 crore in 2005-06.

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