NHPC Limited Buyback offer 2018
NHPC Limited, a Govt. of India Enterprise, was incorporated in the year 1975 with an authorized share capital of Rs. 2,000 million and with an objective to plan, promote and organize an integrated and efficient development of hydroelectric power in all aspects. Later on NHPC expanded its objects to include development of power in all its aspects through conventional and non-conventional sources in India and abroad.
At present, NHPC is a Mini Ratna Category-I Enterprise of the Govt. of India with an authorised share capital of Rs. 1,50,000 Million. NHPC is ranked as a premier organization in the country for development of hydropower.
Initially, on incorporation, NHPC took over the execution of Salal Stage-I, Bairasiul and Loktak Hydro-electric Projects from Central Hydroelectric Project Construction and Control Board. Since then, it has executed 20 projects with an installed capacity of 6507 MW on ownership basis including projects executed by NHDC Limited, a Subsidiary Company of NHPC Limited. NHPC has also executed 5 projects with an installed capacity of 89.25 MW on turnkey basis. Two of these projects have been commissioned in neighbouring countries i.e. Nepal and Bhutan. During the financial year 2016-2017 , NHPC Power Stations achieved the generation of 23275 MU.During the Year 2016-17, NHPC had a Sales of Rs. 7139 Crore with a Net Profit of Rs. 2796 Crore.
During the Year 2016-17, NHPC had a Sales of Rs. 7139 Crore with a Net Profit of Rs. 2796 Crore. Presently NHPC is engaged in the construction of 5 projects aggregating to a total installed capacity of 4290 MW including 1000 MW (Pakal Dul HE Project) being executed through JV Company. 10 projects of 7151 MW are awaiting clearances/Govt. approval for their implementation including 3 Projects of 1186 MW to be executed through Subsidiary/Joint Venture Companies.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Nov 30 2018 |
| Buyback Opening Date: | Jan 01 2019 |
| Buyback Closing Date: | Jan 14 2019 |
| Buyback Offer Amount: | ₹ 599.99 Cr |
| Date of Board Meeting approving the proposal: | Nov 14 2018 |
| Date of Public Announcement: | Nov 14 2018 |
| Buyback Offer Size: | 2.09% |
| Buyback Number of Shares: | 21,42,85,714 |
| FV: | 10 |
| Buyback Price: | ₹ 28 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Year | Revenue | PAT | EPS |
| 2016 | 7353 | 1879 | 0.13 |
| 2017 | 7271 | 2796 | 2.72 |
| 2018 | 6934 | 2759 | 2.69 |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| (i) Amount Invested in Buyback | 1,89,000 | 1,89,000 | 1,89,000 | 1,89,000 |
| (ii) No. of Shares buyback | 2310 | 3500 | 5250 | 7000 |
| (iii) BuyBack Profit | 2310 | 3500 | 5250 | 7000 |
| (iv) Profit(%) | 1.22% | 1.85% | 2.77% | 3.70% |
Recommendation:
Company Contact Details:
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Final Analysis of NHPC Limited 2018 ( Return Analysis)
1. Buyback Announcement date: 14.11.2018—– Share Price was 27.
2. 7000 Shares bought at Rs. 27 means an investment of 1,89,000.
3. Retail Acceptance Ratio was 63%. i.e. out of 7000 shares, 4410 shares have been buyback by the company. Profit on Accepted Shares= 4410
4. The unaccepted Shares were given back on 23.01.2019. The share price on 23.01.2019 was 25.40. So if you sell remaining 2590 shares at 25.40, then a loss of 2590*1.6= 4144
5. Overall we can say a profit of 266 on an investment of 1,89,000 in than 2 months.
NHPC is raising close to 2000 Cr via NCDs. First they do buyback to fill the Govt stomach then they come crying to public for money.
NHPC acceptance ratio is 63%
I have 10750 share and all are eligible for buyback but only 509 accepted can you told me why happen.
Acceptance depends upon no.of eligible shareholders as on Record date who have tendered there shares in the buyback.
What is acceptance ratio of NHPC buyback for retail investors
i have tenderd 1200 shares of nhpc.how many they will accept
What’s acceptance ratio of nhpc
Letter of Offer of NHPC
https://beta.bseindia.com/xml-data/corpfiling/AttachLive/33541787-108e-471c-81b0-8b10928a159d.pdf
Date Of Opening= 01.01.2019
Date Of Closing = 14.01.2019
Entitlement Ratio:
1. Reserved Category = 13 Equity Shares out of every 175 fully paid-up Equity Shares held on the Record Date. ——7.30%
2. General Category = 59 Equity Shares out of every 3,183 fully paid-up Equity Shares Held on the Record Date—-1.85%
Very Poor Entitlement Ratio.
Notice is hereby given that a meeting of the Board of Directors (the Board) of the *HEG Limited (the Company)* is scheduled to be held on Monday, the 26th day of November to consider inter-alia the *proposal for buyback* of the Equity Shares of the Company.
Tomorrow the stock will become rocket
Hi all I’m a new member here, have been reading the comments and posts and his is really helpful to starters like me.
Just this info needed for now, Where is the right place to spot the scheduled board meeting of a company with agenda buyback
On exchanges.
Can u pls share the link here
https://www.bseindia.com/markets/MarketInfo/NoticesNCirculars.aspx?expandable=0
Which are another PSUs that will come with buyback proposal up to March 2019.
Oil India, NBCC. etc et
Useless buyback..
Only to pay government….
NHPC, as expected, fell today by more than 3%.
PSU companies are not known for wealth creation. The NHPC is one of them. Look at its 5-year chart and you will realize how poorly it has performed. However, Dividend Payout is the only positive which is there in PSU and that too because govt wants dividend income to meet out their target.
The Current Market Price of NHPC is 27.1 and Buyback Price is 28 an upside of 3.32%. Govt is making a mockery of Buyback. No point of even studying this one. The market was upbeat on NHPC Buyback but alas opposite happens. Tomorrow NHPC will definitely go down as lot of buying interest was generated in the stock due to buyback.
NHPC needs to improve ROE and ROCE. Both are less than Risk free return for this company. Since pricing power for company is limited. This stock won’t run except for few events.
As on 30 Sep
Retail investors (shares holding below 2 lacs) — 46,42,85,918
Buyback reserved for retailers — 3,21,42,850
Entitlement ratio for retailers — 7% Approx. (as per 30 sep holding)
Gains from Buyback @CMP – 3.32%
It’s only 600 cr buyback.
I think acceptance ration will be not good
Buyback price below expectations.Wait for opportunities to enter the stock at low levels.