NHPC, India’s biggest hydroelectric power generator, opened for subscription today and issue received phenomenal response on the first day itself. As heard in TV it was fully subscribed within few minutes and is subscribed 3.54 times. Issue closes on August 12, 2009. The price band has been fixed at Rs 30-36 per equity share of face value Rs 10 each.
Should you apply?
Every fund house has the view that you should go for it and I am also no different and here are some of my reasons.
- Though Expensive when looking at PE Ratio but many projects are still under construction and do not contribute earnings currently.
- Government IPO a Safety as was the case with REC which did not crack much in the melt down as well.
- Last but not the least its “Power Sector”