NHPC to file fresh DRHP by mid-June, IPO likely by Aug 15

New Delhi, Apr 30 (UNI) State-run NHPC today said it will file a fresh Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (SEBI) in the second week of June for its proposed IPO which is expected to hit the market by mid-August.

The firm had filed the draft prospectus in April last year which is now invalid due to the delay in the appointment of independent directors by the government under the SEBI's listing agreement, NHPC Chairman and Managind Director S K Garg said here at a conference.

''We will file a fresh DRHP with the SEBI by the second week of June for our proposed IPO,'' he said.

Acknowledging that the IPO had been delayed for too long, he said the it will hit the stock market by mid of August this year, which will bring Rs 1,670 crore on face value.

NHPC needs to appoint seven independent directors on its Board to comply with clause 49 of the SEBI's listing agreement, which says 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.

Mr Garg said four independent directors have been inducted on its Board and the rest three are in the process, which would be cleared shortly.

The NHPC public offer involves issuing 10 per cent fresh equity in the market, while the government will piggyback on it and divest five per cent of its stake in the corporation.

UNI SBA MP PM1550