Mumbai: NHPC, the first public sector firm to hit the bourses on Tuesday received warm response, listing at a premium of eight per cent over its issue price on the Bombay Stock Exchange.
"The company raised Rs 6,037 crore by offloading 10 percent equity shares to the public," NHPC Ltd Director Finance A B L Srivastava told reporters here after the listing ceremony.
"Of this, we will use Rs 4,000 crore for project operations and the remaining will go to the government (for divestment of its stake)," he added.
Within minutes the scrip surged 10.42 percent to a high of Rs 39.75 on the BSE. About 168 crore shares, which included five percent government stake and fresh equity of 10 percent changed hands on the bourses.
On the National Stock Exchange, the NHPC listed with 17 percent gain at Rs 42.
Enthused by the response, company chairman and managing Director S K Garg said, the first leading public sector unit after the UPA`s second consecutive win, was subscribed 23.73 times.
The IPO proceeds would be used to part finance construction and development of projects like Subansiri Lower, Uri-II, Chamera-III and Parbati-III.
"We have planned to generate almost 17,200 million units in 2009-10. One project in Jammu and Kashmir of 120 MW is going to be commissioned in the month of December-January this year," Garg said.
NHPC has an installed capacity of 4,815 MW and currently has 11 projects under construction accounting for a total capacity of 4,622 MW.
The company`s power stations and hydro-power projects are predominantly located in the North and North-East of India, Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Assam, Manipur, Sikkim and West Bengal.
It is awaiting Government sanction for a further five projects with an anticipated capacity of 4,565 MW.
The company clocked a net profit of Rs 1,075-crore in FY 09, Garg said, adding NHPC "will perform better in 2009-10 than last year, both in terms of revenue and net profit".