In­sti­tu­tional Play­ers Lap Up NHPC Is­sue; Re­tail Bids to Open To­day

The Economic Times - - Smart -

Mum­bai: The of­fer for sale (OFS) of NHPC, the first di­vest­ment from the govern­ment in the cur­rent fis­cal, was lapped up by in­sti­tu­tional in­vestors. The por­tion re­served for these in­vestors was sub­scribed 1.55 times on Wed­nes­day. The re­tail in­vestor por­tion will be open for bids on Thurs­day.

On Wed­nes­day, in­sti­tu­tions bid for 156 crore shares against the 100 crore shares re­served for them. Ma­jor­ity of the bids came in at the floor price of ₹ 21.75 per share ac- cord­ing to BSE data. The min­i­mum bid price was a 6% dis­count to the stock’s Tues­day’s clos­ing price. Shares of NHPC de­clined 6.5% to ₹ 21.55 on Wed­nes­day. Re­tail in­vestors will re­ceive shares at a 5% dis­count to the price at which bids are ac­cepted. The govern­ment is plan­ning to sell 11.36% stake in NHPC to raise about ₹ 2,735 crore through OFS. Post OFS, the govern­ment’s stake will come down to 74.6% from the cur­rent 85.96%. The govern­ment aims to raise ₹ 56,500 crore by sell­ing stakes in state-owned en­ter­prises in 2016-17.

HIGHS & LOWS

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