NHPC subscribed 23 times; to list on first week of September

Last Updated: Wednesday, August 12, 2009 - 20:23

Mumbai: The initial public offer of state-
run hydro-power producer NHPC closed on Wednesday, getting
subscription of over 23 times the shares on offer.

NHPC is likely to get listed by the first week of
September.
The IPO, the second largest in terms of funds to be
raised (about Rs 6,000 crore) in the country till date,
received maximum bids from institutional and high net-worth
individuals, and this robust response is likely to encourage
other public sector firms to tap the primary market route to
raise funds.

The NHPC issue received bids for over 3,946.85 crore
shares against 167.73 crore on offer, as per the data
available on the National Stock Exchange.

"The company would get listed in another three weeks time
and we are expecting a stellar listing," Enam Securities (NHPC
issue manager) Head Investment Banking Srinivas Subramanium
said.

The portion reserved for high networth individuals and
institutional investors got subscribed by over 56 times and 29
times respectively.

While the retail investors portion was subscribed 3.11
times and the employees portion received bids for 0.53 times
the shares on offer, market sources said.

According to investment banking sources, Enam Securities
garnered 52 per cent of the QIB book, while Kotak Mahindra and
SBI Capital garnered 27.48 and 20.53 per cent respectively.

Sources said the issue price would be around Rs 36 as
most of the bids came in at the upper end of the price band.
The price band of the issue was fixed between Rs 30-36.

"Pricing would be fixed over the next few days. The
robust response of NHPC issues would enthuse other PSU IPOs
which are waiting on the sidelines to tap the capital market,"
Subramanium said.

After NHPC, Oil India Ltd plans to hit the capital market
on September 7 and has fixed a price band of Rs 1,000-1,100 a
share.

NHPC plans to raise over Rs 6,000 crore at the upper end
of the price band, making it the country`s second biggest
public offer after Reliance Power.

Analysts said being a public sector firm, NHPC has
received attention from various categories of investors. 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 2008.

Enam Securities, Kotak Mahindra Capital and SBI Capital
Markets are acting as the book running lead managers for the
issue.

Bureau Report



First Published: Wednesday, August 12, 2009 - 20:23
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