NHPC, a Mini-Ratna public sector undertaking has filed its DRHP with SEBI on 7th August, 2008 to enter the capital market with a public issue of 167 crore equity shares of Rs 10 each at a price to be decided through the 100% book building process at a later stage.
The issue comprises of a fresh issue of 111 crores equity shares by NHPC and an offer for sale by the President of India of 56 crore equity shares. The net issue to the public consists of 163 crore shares and a reservation of 4 crore to the employees of the company.
The issue shall constitute 13.64% of the post issue paid-up capital of NHPC.
The President of India, currently holds 100% of the issued and paid-up Equity Share capital of the company. After the Issue, he will continue to hold 86.36% equity capital of the company.
The company proposes to list its shares on BSE & NSE. The BRLMs to the issue are Enam Securities, Kotak Mahindra and SBI Capital Markets.
The object of the fresh issue is to part finance the construction of 6 identified hydroelectric power projects - ie Subansiri Lower in Aurnachal Pradesh; Uri and Nimmo Bazgo in J&K; Chamera III and Parbati III in HP and Chutak. Besides another project - Teesta Low Dam IV. The object of the offer for sale is to carry out the disinvestments of 56 crore equity shares.
The company intends to use the proceeds from the fresh offer for sale for part financing the above mentioned projects costs of Rs 14,013.96 crores and for general corporate purposes. The company will deploy Rs 6285.33 crores for Subansiri Lower project; Rs 1724.79 crores for Uri; Rs 1405.63 crores for Chamera III; Rs 2304.56 crores for Parbati III; Rs 611.01 crores for Nimmo Bazgo; Chutak power project will entail an expenditure of Rs 621.26 crores and Rs 1,061.38 crores will be deployed for the Teesta Low Dam IV project.
The company has received non-renewable line of credit of Rs 6,500 crores from LIC.
NHPC is a hydroelectric power generating company engaged into the planning, development and implementation of an integrated network of hydroelectric projects in India. The company executes all aspects of the development of hydroelectric projects from concept to commissioning. NHPC has developed and constructed 13 projects and its installed capacity is currently 5,175 MW. This includes two stations with a combined capacity of 1,520 MW, constructed and operated through its subsidiary, NHDC. Its power stations and hydroelectric projects are located in the states of Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Assam, Manipur, Sikkim and West Bengal. The company generated 14,813.16 MUs of electricity in fiscal 2008.
Presently the company is engaged in the construction of 11 additional hydroelectric projects, which are expected to increase the total installed capacity by 4,622 MW. Further eight projects, including one joint venture project, with an anticipated capacity of 5,751 MW, are currently awaiting sanction from CCEA. Survey and investigation works are being carried out to prepare project proposal reports for nine additional projects, totaling 7,255 MW of anticipated capacity. Pursuant to an MoU with the government of Madhya Pradesh, NHPC's subsidiary was incorporated in August 2000 to take advantage of the hydroelectric potential of the Narmada basin. In addition, in September 2007 NHPC signed an MoU in connection with the establishment of a joint venture with the government of Manipur and in June 200,7 it entered into an MoU with the government of Arunachal Pradesh.
Besides, the company is in the process of negotiating another MoU with the government of Jammu & Kashmir to develop and undertake a number of hydroelectric projects. NHPC also provides contract-based technical, management advisory and consultancy services in the domestic and international markets.
As a Mini-Ratna Category-I entity, NHPC will have greater autonomy to undertake new projects without GoI approval, subject to an investment ceiling of Rs. 500 crores set by the GoI.
For the year ended March 31, 2008, the company posted total income of Rs 3,675.61crores as against Rs 2,682.67 crores for the year ended 31st March 2007. The company's net profit for the year ended March 2008 was Rs 1,232.31 crores as compared with Rs 1,068.07 crores for the previous year.