Mumbai: The much-awaited initial public offer
of state-run NHPC allured investors and was fully subscribed within an hour of the opening of the issue on Friday.
The NHPC IPO, which is the first stake sale by a PSU company in the last one and a half years, received bids for 175.81 crore shares as against 167.73 crore shares on offer.
The issue got subscribed 1.05 times as on 1100 hrs, as per data available on the National Stock Exchange.
Marketmen said the NHPC IPO with a tag of public sector firm and attractive price band has enthused investors, besides the overall recovery in the secondary market is also getting reflected in the primary market.
"Being a public sector firm, NHPC has drawn a lot of attention from various categories of investors," SMC Capitals Equity Head Jagannadham Thunuguntla said.
"Many people were waiting for the IPO and there is a lot of appetite among the investors. The subscription of NHPC's initial public offer shows the revival of the primary market in the country," he added.
The NHPC IPO is for 167.73 crore shares in the price and of Rs 30-36 and would close on August 12.
The NHPC IPO came days after the Adani Power IPO, which witnessed robust investors' interest and was subscribed over 21 times.
NHPC, formerly known as National Hydroelectric Power Corporation, has an installed capacity of 4,815 MW and has 11 projects under construction.
This is the first stake sale by a state-run company in the last one and a half years and also the first PSU offering since the September 2008 global financial meltdown. Earlier in February 2008, REC went public and raised over Rs 1,600 crore.
Enam Securities Pvt Ltd, Kotak Mahindra Capital Company Ltd and SBI Capital Markets Ltd are acting as lead managers for the issue.
First Published: Friday, August 07, 2009, 13:23