Govt plans to raise Rs 130 crore by selling shares in NHPC

NEW DELHI: Government plans to raise Rs 130 crore by selling shares held in hydel power producer NHPC to the employees of the company.

"....the Government of India has offered 62,881,397 equity shares of Rs 10 each to the eligible employees of NHPC Ltd at discounted price of Rs 20.66 per share and the same offer for sale of share shall remain open from September 26, 2016 to October 3, 2016," the state-run company said in a filing to the BSE.

NHPC's Rs 2,700 crore share sale on April 28 managed to scrape through as oversubscription by institutional bidders made good for over 40 per cent of retail portion which remained unbid for.

The sale of over 125.76 crore shares, or 11.36 per cent stake by the government at a floor price of Rs 21.75 was over-subscribed 1.65 times, according to stock exchange data.

A day after institutional bidders poured in Rs 3,410 crore to seek 1.58 times the shares reserved for them, retail investors bid for just 14.5 crore shares or 58 per cent of 25.15 crore shares reserved for them.

NHPC is the first disinvestment by the government in the current fiscal, which has set a target of Rs 56,500 crore through selling shares and privatisation of public sector undertakings (PSUs).