Wednesday, August 26, 2009

NHPC IPO Allotment details

NHPC, largest hydro-power generation company and government owned entity, has fixed the issue price of Rs 36, at higher end of the price band. The company garnered Rs 6,038.55 crore from the issue; out of which, the government received Rs 2,012.85 crore and that will be used for infrastructure projects. The rest of the amount i.e. Rs 4,025.7 crore, the company will use for its power projects.
Shares of NHPC are expected to be listed by the first week of September, merchant bankers to the issue said.
Basis of Allotment
(Under Subscription under Employee quota have been allocated to QIB/HNI/Retail in 60:10:30 ratio)
It had launched its initial public offering (IPO) of 1,67,73,74,015 equity shares of Rs 10 each with a price band of Rs 30-36 per equity share. It opened during August 7 and August 12, 2009. The issue received overwhelming response from all categories of investors and was subscribed 23.74 times. 
Qualified institutional investors (QIBs) were the major supportive investors with their portion being subscribed 29.16 times. Non-institutional and retail investors' portion subscribed 26.7 times and 3.87 times, respectively.
The issue constituted 13.64% of the post-issue capital of NHPC. After the issue, the shareholding of the President of India shall be approximately 86.36% of the post-issue paid-up equity share capital of the company.
The proceeds of the fresh issue (after deducting the proportionate underwriting and issue management fees, selling commissions and other expenses associated with the fresh issue) will be used to part finance the construction and development costs of certain of projects, namely, Subansiri Lower, Uri – II, Chamera - III, Parbati – III, Nimoo Bazgo, Chutak, and Teesta Low Dam - IV