New Delhi: The Disinvestment Department will soon appoint three merchant bankers for selling 11.36 percent stake sale in NHPC that could fetch about Rs 3,000 crore to the exchequer.
The Department of Disinvestment (DoD) Monday floated a Request for Proposal (RFP) to disinvest about 11.36 percent stake through offer for sale (OFS) by promoters.
The Government will appoint up to three merchant bankers with requisite experience, it said, adding the last date for submission is August 11, 2014
At the current market price of Rs 24.05 a piece, sale of 11.36 percent or 125.76 crore shares would fetch about Rs 3,000 crore to the exchequer.
Government holds 85.96 percent stake in NHPC. The stake sale would help the company comply with the minimum 25 percent public shareholding norm of market regulator Sebi.
The Department of Disinvestment (DoD) is in the process of preparing a draft Cabinet note for inter-ministerial consultation for NHPC stake sale.
NHPC has developed 20 hydroelectric power stations with a total installed capacity of 6,507 MW. The power stations and hydroelectric projects are located in the North and North East of India, in the states of J&K, Himachal Pradesh, Uttrakhand, Arunachal Pradesh, Assam, Madhya Pradesh and West Bengal.
The paid up capital of NHPC is Rs 11,071 crore as on March 31, 2014.
Government is also considering to allot shares to NHPC employees at a discount of 5 percent to the issue price up to a maximum of 10 percent of the OFS size. The employees will be eligible to apply for shares up to Rs 2 lakh only.
In the current fiscal the government plans to mop up Rs 43,425 crore from selling stake in PSUs.
