Govt expects to raise Rs 4,200 crore through NHPC buyback

Since NHPC came out with its IPO less than five years back, the company may choose to buy back shares at the IPO price of Rs 36 per share to offer a good exit opportunity to existing shareholders

GN Bureau | October 23, 2013



The investment bankers are expecting the buyback price of National Hydroelectric Power Corp's (NHPC) to be set in the range of Rs 30-36 a share, a hefty premium of 52-80% to the current market price. This could help the government raise at least Rs 4,200 crore.

Investment bankers expect the buyback of shares to be done via the tender offer method, which allows a company to buy back shares at any price subject to a pre-approved ceiling price. Also, the tender offer method is the only way the promoter can participate in the buyback of a company.

Bankers said since NHPC came out with its initial public offer (IPO) less than five years back, the company may choose to buy back shares at the IPO price of Rs 36 per share so as to offer a good exit opportunity to existing shareholders.

Bankers said the company will require shareholders' nod as the buyback exceeds 10% of the total share capital, but is well within the maximum 25% limit that the company can buy back. The government plans to offer 140 crore shares, or 11.36% stake, in the hydel power-generation company.

Comments

 

Other News

When religion, politics and Bollywood come together

Tavleen Singh, noted journalist and political commentator, has turned to fiction, with her debut novel ‘The Actor’ (HaperCollins India). Set in the near future, it has a superstar, Amit Singh, turning to politics, when the political landscape is dominated by prime minister Guru Gaynendraj

Cabinet approves setting up of Integrated Transport & Logistics Authority

The union cabinet, chaired by prime minister Narendra Modi, on Tuesday approved the setting up of a Special Purpose Vehicle (SPV), called Integrated Transport & Logistics Authority (ITLA), to strengthen research, planning, appraisal, monitoring and impact assessment within the broad domains of Transp

Why foundational literacy and numeracy is key to school education

Foundational Literacy and Numeracy (FLN) are often described as the building blocks of education. Yet, their significance goes well beyond a child’s ability to read a sentence, write a response or solve a basic mathematical problem. These foundational skills shape how children understand the world,

When police data becomes the algorithm

For decades, policing has followed a familiar sequence: a crime occurs, the police respond, an investigation produces records and those records become part of the institutional memory of the criminal justice system. Artificial intelligence is beginning to alter that sequence. Instead of merely recording

Before India voted, the framers worried about the referee

“We are making a Constitution forever and not only for today.” Shibban Lal Saksena said this in the Constituent Assembly on June 15, 1949. He was warning that a ruling party might one day choose a loyalist to run India’s elections. Seventy-seven years later, the Supreme Court is wrestli

Delhi moves to real-time traffic management

The Cabinet Committee on Economic Affairs (CCEA), chaired by prime minister Narendra Modi, has approved implementation of the ITMS Project by Delhi Police at an estimated cost of Rs.1,789.52 crore, inclusive of taxes. The project will cover 42 identified traffic corridors and will be implemented in three

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter