Mumbai: Public sector National Hydroelectric Power Copporation (NHPC) has filed a draft prospectus with market regulator SEBI for its public offer, kicking off the disinvestment process in power sector PSUs.

The corporation will be hitting the capital market with an IPO of over 111.7 crore fresh equity shares, comprising 10 per cent of its current equity, while the government would piggy back on it and divest five per cent of its stake in the corporation.

The government''s five per cent stake will constitute 558,683,315 equity shares.

Post IPO, government''s stake in the PSU would come down to about 86.30 per cent, sources said.

NHPC has a paid-up capital of Rs10,600 crore and an authorised share capital of Rs15,000 crore.

The corporation is planning to hit the capital market by June this year, sources said.

While proceeds from the 10 per cent fresh equity would be retained by the company to part-finance upcoming projects, funds raised by five per cent government equity sale would go to government.

The UPA government had halted the disinvestments process in PSUs, giving into intense pressure from allies like Left parties and DMK, which had vehemently opposed a proposal to divest stake in Neyveli Lignite Corporation last year.

The issue is being made through 100 per cent book-building process, wherein at least 60 per cent of the net issue shall be allocated on a proportionate basis to qualified institutional buyers.

The company has also made a provision to allocate over 2.65 crore shares for eligible employees.under an employee stock option plan (Esop).

NHPC has appointed Enam Financial Consultants Pvt Ltd, Kotak Mahindra Capital Company and SBI Capital Market Ltd as lead managers to the issue and the company has proposed to list its shares on both NSE and BSE

NHPC''s upcoming projects include Subansiri Lower, Uri-II, Chamerra-III, Nimoo-Bazgo and Chutak.