NHPC IPO - Options for Retail Investors

The Indian Government has commenced the disinvestment with the launch of NHPC IPO. The Initial Public Offering (IPO) and Offer for Sale of NHPC Limited opened for subscription on August 7, 2009. The IPO received overwhelming response with full subscription at the end of first hour after opening.

The company is issuing 1,67,73,74,015 equity shares of Rs 10 each for cash at a price band of Rs 30 to Rs 36 through 100% book building process.

The IPO closes for subscription on Wednesday - August 12, 2009.

Enam Securities Private Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the issue. Kotak Securities Limited and SBICAP Securities Limited are the Syndicate Members to the issue.

Karvy Computershare Private Limited is the registrar to the company. ICRA Limited has assigned IPO Grading of IPO Grade 3.

The Minimum Order Quantity is 175 Equity Shares per application and the maximum subscription amount for retail investor is Rs 100000.

The Retail Investors can opt to apply for the IPO with the below options to maximize allotment if the Government reduces the price which doesn't seem to happen due to the overwhelming response.

Number of Shares	Price Per Share	Total Amount
2625	Rs 36	Rs 94500
2800	Rs 35	Rs 98000
3325	Rs 30	Rs 99750

The Retail Investors can either apply at cut-off price for 2625 shares by locking in Rs 94500 or apply for the above 3 options by locking in Rs 99750.

Source : Equity Bulls

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