PowerGrid, NHPC public offers face Clause 49 blues
25 May 2007
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
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.
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.