PowerGrid, NHPC public offers face Clause 49 blues

New Delhi: The public floats of the Power Grid Corporation of India (PGCIL) and National Hydroelectric Power Corporation (NHPC) are likely to be delayed, with both companies yet to appoint the requisite number of independent directors on their boards as stipulated under Clause 49 of the Listing Agreement.

The state-owned companies have not yet appointed even a single independent director on their boards. PGCIL needs six independent directors and NHPC requires seven directors before they can go public. The Government is in the process of clearing the appointment of independent directors on the board a PGCIL official said.

The company was earlier planning to come out with its IPO in April, which has been pushed back on account of delays in clearances from the Securities and Exchange Board of India.

NHPC has revised its IPO dates to early July, provided the company gets Government approval to appoint independent directors before that. NHPC plans fresh shares amounting to around 10 per cent of its authorised share capital of Rs15,000 crore. The Government, which currently holds 100 per cent equity in the company, will sell 5 per cent of its shares to the public.