NHPC expects to hit capital market in Q1 next fiscal

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New Delhi, Feb 19 (UNI) State-owned National Hydroelectric Power Corporation Ltd (NHPC) today said it expects to enter the capital market in the first quarter of next fiscal.

''We hope to launch our initial public offer (IPO) in the first quarter of 2008-09 subject to appointment of Independent Directors,'' NHPC Chairman and Managing Director S K Garg told reporters on the sidelines of a conference here.

The company expects to appoint the requisite number of Idependent Directors by March this year, he added.

The country's largest hydel power generator NHPC had filed its draft prospectus in April last year but could not get the green signal from Securities and Exchange Board of India (SEBI) as it failed to comply with clause 49 of SEBI's listing agreement, which deals with the number of independent directors in the board of a company.

According to SEBI guidelines, at least 50 per cent of the members of the board of a company wishing to list in the share market must be Independent Directors.

NHPC proposes to dilute 15 per cent stake, that includes 10 per cent of company's equity and five per cent disinvestment by government, with the issue of 16.7 crore shares.

After the IPO, the government's stake in the PSU will come down to about 86.30 per cent.

Mr Garg said the turbulence in the market has not dampen the spirit of the company.

''We are confident that our issue will do well, mainly because of our expertise in technical know-how, sound financial position and expansion plans in the future,'' he said.

NHPC has a paid-up capital of Rs 10,600 crore and an authorised share capital of Rs 15,000 crore.

UNI MP PBB KN1614

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