Indian hydropower company’s IPO 24 times over-subscribed

NHPC’s IPO for a stake of 14 percent in the government-backed company is expected to raise INR60bn.

India’s national hydropower company NHPC’s initial public offering (IPO) has been oversubscribed 23.74 times, according to data from the country’s National Stock Exchange.

Assuming a price per share of INR36 (€.52, $.75), NHCP could have raised a total of INR60 billion. It ended up pricing the shares between INR30 and INR36. The capital raised will be used to run the company as well as partly finance the development of its projects, NHPC said. 

The strong response to NHPC’s IPO comes on the heels of Adani Power’s IPO, which was over-subscribed about 22 times last week. The 3i-backed power company raised INR30.2 billion in that IPO.

Approximately 29 percent of the IPO was allocated to Qualified Institutional Buyers (QIBs) and was over-subscribed 29 times. About 59 percent of the issue was allocated to non-institutional investors such as corporates and high net worth individuals and was over-subscribed 57 times, the data noted.

Foreign investors under the QIB category include US-based asset managers such as T Rowe Price, Fidelity, Wellington Financial, Batterymarch, Morgan Stanley and HSBC Offshore, according to The Economic Times. Domestic investors included insurance company Life Insurance Corporation, mutual funds Reliance, Prudential ICICI and Bajaj Alliance, the Indian daily added.

After the issue, the largest shareholder of NHPC is the president of India, acting through the country’s Ministry of Power. The public holds the remaining 13.64 percent.

NHPC was not available for comment at press time.