NHPC chairman S.K. Garg (right) with director (personnel) S.K. Chaturvedi in New Delhi on Wednesday. (PTI)

New Delhi, April 30: State-run National Hydroelectric Power Corporation (NHPC) plans to raise Rs 6,500 crore through two rounds of equity divestments to partially meet its Eleventh Five-Year Plan capital mobilisation target of Rs 28,000 crore.

NHPC proposes to hit the market in August this year with an initial 10 per cent stake dilution, company chairman S. K. Garg said.

Garg said the company planned to become a 10,000MW firm by the end of the plan period from its current capacity of about 5,000MW.

“While the company will divest a 10 per cent stake in the IPO, the government will disinvest another 5 per cent around that time. Another 14 per cent stake will be subsequently divested,” he said.

Garg said the Rs 1,676-crore public flotation comprising 167 crore shares is the largest in the country in terms of the shares on offer.

The IPO, scheduled for last year, got delayed as the company did not appoint independent directors in time, a condition mandatory for any company to float an IPO.

Net profit

The company registered a net profit after tax of Rs 1,002.06 crore for 2007-08, Rs 77.26 crore more than in the previous fiscal. NHPC reported a sales turnover of Rs 2,311.47 crore against Rs 1,962.76 crore in 2006-07.

NHPC is setting up a joint venture with the Jammu & Kashmir Power Development Corporation for three power projects on Chenab – Pakal Dul (100MW), Kiru (600MW) and Kawar (520MW).