The company – known as National Hydroelectric Power Corporation Private Ltd until March last year – plans to use the net proceeds of the approximately Rs60B (US$1.25B) Initial Public Offering (IPO) to build more projects.
The projects that would benefit from the funding injection are: Subhansiri Lower (2000MW), Parbati-III (520MW), Uri-II (240MW), Chamera III (231MW), Teesta Low Dam-IV (160MW), Nimmo Bazgo (45MW) and Chutak (44MW).
For the IPO, run over 7-12 August, the price band for shares (face value Rs10) was set at Rs30-Rs36. A total of 1.677B shares were put in the issue and the offer was oversubscribed within hours.
NHPC has 13 plants with total installed capacity of 5175MW though generating capacity at present is 5134MW due to downgraded ratings for Loktak and Tanakpur. The other plants are: Baira Siul, Salal, Chamera I & II, Uri-I, Rangit, Dhuliganga I, Dulhasti and Teesta V.
The total also includes 1520MW in two plants (Indira Sagar, Omkareshwar) built and run by a subsidiary, NHDC.
The company has 11 hydro plants under construction to add a total of 4622MW of installed capacity to the portfolio.
In addition, it is waiting for Government clearance to build another five plants with total installed capacity of 4.565MW. Government approval for joint venture projects with 2166MW of total installed capacity are also awaited.
NHPC has survey and investigation work underway for nine possible further projects with combined installed capacity of 7255MW.
International project plans include proposals for hydro power plants in Bhutan and Myanmar.
The company noted in its final Red Herring Prospectus for the IPO that it also plans to diversify its generation mix, and already has a deal to build a thermal plant.
The book running lead managers for the IPO book-building were Enam Securities Private Ltd, Kotak Mahindra Capital Co Ltd and SBI Capital Markets Ltd.
The net worth of NHPC, at 31 March, was Rs18,392.5Cr (US$3.85B), it noted in the Prospectus.
