Power ministry to float cabinet note on NHPC share buyback

According to a power ministry official, the cabinet note on NHPC share buyback is ready and will be circulated soon.

hidden September 12, 2013 19:02:45 IST
Power ministry to float cabinet note on NHPC share buyback

New Delhi: Country's largest hydro power producer NHPC will buy back its shares worth Rs 1,600 crore from the market and the power ministry will soon float a cabinet note for the same.

According to a power ministry official, the cabinet note on NHPC share buyback is ready and will be circulated soon.

The government had earlier planned to disinvest 11.36 percent stake in NHPC through offer for sale (OFS) method in the domestic market. It had also selected Credit Suisse and HSBC as merchant bankers to manage the sale of shares.

Power ministry to float cabinet note on NHPC share buyback

NHPC to buyback shares. Reuters

But due to choppy market conditions, it changed the plan to buy back of shares. At present, the government holds 86.36 percent stake in NHPC.

NHPC got listed on bourses in 2009 after the government divested 5 percent stake, while the company issued 10 percent fresh equity.

The paid-up equity capital of the company, as of 31 March 2012, was Rs 12,300.74 crore.

The government plans to raise Rs 40,000 crore in the current financial year (2013-14) through disinvestment.

NHPC generates 5,702 MW electricity from 17 hydel stations in the country. As many as seven power stations with a total capacity of 4,095 MW are under construction.

For the April-June quarter of the current fiscal, the company reported more than 7 per cent increase in its net profit at Rs 719.93 crore.

The company's total income climbed to Rs 1,619.73 crore in the June quarter results from Rs 1,424.45 crore in the same period a year ago.

The company's scrip was trading at Rs 17.95, up 2.28 percent, on the BSE.

PTI

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