Kick-starting the disinvestment process of the current fiscal year 2016-17, the
government will on Wednesday sell an 11.36 % stake in power major
NHPC at Rs. 21.75 per share which is likely to fetch the exchequer over Rs. 2,700 crore.
The issue price of Rs. 21.75 is at a discount of 5.64 % to Tuesday April 26,2016 's closing price of Rs. 23.05 on the BSE.
"The NHPC OFS will happen tomorrow at a floor price of Rs. 21.75 a share," a government official said.
The Government of India holds 85.96 % in NHPC and selling over 125 crore shares, or 11.36 per cent, would help it comply with minimum public shareholding norms.
NHPC, under administrative control of the Power Ministry, is engaged in generating power through conventional and non-conventional sources and is dedicated to the planning, development and implementation of an integrated and efficient network of power projects in India
As the newly renamed Department of Investment and Public Asset Management (DIPAM) races to meet the budgeted disinvestment target of Rs. 56,500 crore, NHPC would be the first PSU stake sale on the block.
NHPC would be the third public sector company to be sold under the new
offer for sale rules notified by market regulator Securities and
Exchange Board of India (SEBI)
While institutional investors would bid in the first day of the offer for sale (OFS), retail investors would get to bid on the second day.
The issue price of Rs. 21.75 is at a discount of 5.64 % to Tuesday April 26,2016 's closing price of Rs. 23.05 on the BSE.
"The NHPC OFS will happen tomorrow at a floor price of Rs. 21.75 a share," a government official said.
The Government of India holds 85.96 % in NHPC and selling over 125 crore shares, or 11.36 per cent, would help it comply with minimum public shareholding norms.
NHPC, under administrative control of the Power Ministry, is engaged in generating power through conventional and non-conventional sources and is dedicated to the planning, development and implementation of an integrated and efficient network of power projects in India
As the newly renamed Department of Investment and Public Asset Management (DIPAM) races to meet the budgeted disinvestment target of Rs. 56,500 crore, NHPC would be the first PSU stake sale on the block.
While institutional investors would bid in the first day of the offer for sale (OFS), retail investors would get to bid on the second day.
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