Aug 12, 2009

NHPC IPO Closes today, oversubscribed 23 times!

The initial public offering (IPO) of India's biggest hydroelectric power generator, NHPC, that opened for Subscription on the 07th of August, 2009, closed today for subscription. The issue has received a brilliant response from all the categories of investors.

Also Read:
Subscribe to the NHPC IPO : Experts

According to the data released on the NSE website, the NHPC IPO has already been subscribed for a whopping 23.44 times so far. It has received bids for more than 3,932 crore shares as against the issue size of 167.73 crore shares.

However, this great response to an issue on the last day of listing has not been uncommon on the history of IPOs.

Till 14 hours IST today itself, the qualified institutional investors were the major supportive investors with their portion being subscribed 23 times. Non-institutional and retail investors' portion subscribed close to 4.4 times and 2 times, respectively.

The issue opened with an initial public offering (IPO) of 1,67,73,74,015 equity shares of Rs 10 each for cash at a price of Rs 30-36 per equity share aggregating Rs 5,032-6,039 crore. The price band has been fixed at Rs 30-36 per equity share of face value Rs 10 each.

The issue comprised a fresh issue of up to 1,11,82,49,343 equity shares by NHPC and an offer for sale of 55,91,24,672 equity shares by the President of India acting through the Ministry of Power, Government of India. The issue comprised a net issue to the public of 1,63,54,39,665 equity shares and a reservation of 4,19,34,350 equity sharess for subscription by eligible employees at the issue price.

The issue shall constitute 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. NHPC will raise around Rs 6,038.55 crore from the issue at Rs 36/share, a higher price band. Out of which, the government will receive Rs 2,012.85 crore and 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.

Aided by the very good response from the investors, the issue had been oversubscribed 7 times on the first day itself.



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