Profit

NHPC Share Sale Sails Through Despite Weak Retail Response

 Share
EMAIL
PRINT
COMMENTS
NHPC Share Sale Sails Through Despite Weak Retail Response
State-owned hydropower producer NHPC Ltd's Rs 2,700 crore share sale on Thursday managed to scrape through as oversubscription by institutional bidders made good for over 40 per cent of retail portion which remained unbid for.

The sale of over 125.76 crore shares, or 11.36 per cent stake by the government, at a floor price of Rs 21.75 was over-subscribed 1.65 times, according to stock exchange data. A day after institutional bidders poured in Rs 3,410 crore to seek 1.58 times the shares reserved for them, retail
investors bid for just 14.5 crore shares or 58 per cent of 25.15 crore shares reserved for them.

As per pre-bid condition, the unsubscribed retail portion is likely to be allocated to institutional investors. While non-retail or institutional investors had bid for 156.8 crore NHPC shares on day one of the offer for sale (OFS) on Wednesday, another 27.06 crore shares were bid for by them today.

The government sold over 125.76 crore shares, or 11.36 per cent stake, in NHPC at a floor price of Rs 21.75. Of this, over 100.61 crore shares were offered to institutional investors.

At the floor price of Rs 21.75, the sale of over 125.76 crore shares fetched Rs 2,700 crore to the exchequer.  A 5 per cent additional discount is being offered to retail investors, who are classified as those bidding for shares worth up to Rs 2 lakh.

However, the NHPC stock slipped below the floor price of Rs 21.75 in a weak market and closed at Rs 21.15 on the BSE. On day one of the two-day share sale, institutional investors on Wednesday bid for 156.79 crore shares as against 100.61 crore offered to them.

Most of the bids came at the floor or minimum bid price of Rs 21.75. At this price, subscription of over 156.79 crore shares totalled Rs 3,410 crore.

NHPC is the first disinvestment by the government in the current fiscal, which has set a target of Rs 56,500 crore through selling shares and privatisation of public sector undertakings (PSUs).

The government's share sale will bring down its shareholding in NHPC to 74.6 per cent, from 85.96 per cent. This will help the company comply with the minimum 25 per cent free-float requirement.

NHPC, under the administrative control of the Power Ministry, generates power through conventional as well as non-conventional sources. 


(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)


Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................

Top