NHPC IPO generates investor demand for Rs 1.42 lakh cr shares

NEW DELHI: Signaling the revival of investor interest in the primary market, the initial public offering of state-run NHPC has generated demand for shares worth Rs 1.42 lakh crore, an amount nearly 23 times the value of scrips on offer.

Analysts believe that the overwhelming investor response in the NHPC IPO is expected to encourage other public sector firms to tap the primary market route to raise funds.

Adani Power, the initial public offer of which closed early this month, also witnessed a stupendous response, with the IPO getting subscribed over 20 times the shares on offer.

While Adani Power issue had generated a demand for shares worth over Rs 53,841.80 crore, NHPC was subscribed nearly 24 times and garnered a demand for Rs 1.42 lakh crore shares.

Analysts believe that with stellar response in both the IPOs, the primary market is back on track and more companies which are waiting on the sidelines would think of hitting the capital market now.

The NHPC issue, which closed today, received bids for over 3,946.85 crore shares against 167.73 crore on offer, garnering a demand of 23.68 times the shares on offer, as per data available on the National Stock Exchange.

Investment banking sources said most of the bids came in at Rs 36, thereby signaling that the issue price would be fixed at the higher end of the price band. The company would be listed in the first week of September.