NHPC issue Oversubscription

The issue received excellent support and was very heavily oversubscribed. The subscription is as follows:-

QIB 29.16 times

HNI 56.70 times

Retail 3.87 times

Employee 0.56 times

Overall the issue was oversubscribed 23.73 times and I believe this has beaten most people’s expectation. The cost for HNI’s based on 11.25% interest rate would now be Rs 7.77 paisa per share. If however they were able to get the funds at the reduced rate of interest of 10% the cost per share would be Rs 6.85 per share. The total number of applications received were 13.66 lakhs.

The share is expected to list just before the issue of Oil India opens on 7th of September 2009. People believe that unless NHPC has a grand debut on listing, it may be difficult to sell Oil India.

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One Response to “NHPC issue Oversubscription”

  1. nnkamani says:

    Dear Arun,
    CONGRATULATIONS on this Top Class Note.
    You have done a masterfull job by making this brief and concise note on NHPC.You have taken into account the current market scenario,The Company NHPC(Current and Potential),and what a Long Term Investor and IPO Subscrber should do.This is one of the best notes on NHPC.Keep it up.

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