NHPC Ltd IPO NHPC IPO Worth even at upper price band

Why nhpc ipo Worth even at upper price band ?
NHPC Ltd. is entering the capital market on 7th August 09 with a public issue of 167.74 crore shares of Rs. 10 each, in the band of Rs. 30 to Rs. 36 per share. Earlier, it was expected that issue will be made in the band of Rs. 20 to Rs. 24. But due to huge appetite seen for power companies and power IPO, Adani Power IPO response, This may be seen a rise of almost 50%.
Here are five reasons on why to invest in NHPC IPO even at upper price band.
1. NHPC Ltd being a profit making with total income being a profit making with total income being placed at Rs. 4051 crore for FY09 with PAT at Rs. 1244 crore, implying an EPS of Rs. 1.11. It has always seen that government IPO, leaves enough scope for prospective investors to make money and this can be expected from this IPO as well.
2. The company has already developed and constructed 13 hydro power stations with total installed capacity of 5175 MW which are located in J&K, H.P, Uttarakhand, W. Bengal and N.E. States. The company is engaged in constructing 11 additional hydro with capacity of 4622 MW.
3. NHPC is also awaiting for government sanction of five projects with capacity of 4565 MW and certain JVs for 2166 MW. So eventually, NHPC is aiming to become a 10,000 MW plus company, in the near future in hydro space, which is considered quite respectable.
4. The proposed NHPC IPO is to fund 7 projects with aggregate capacity of 3240 MW with total project cost of Rs. 14,014 crore, which translates into Rs. 4.32 crore per MW.
5. The company will be a significant player in Hydro Power and would be PSU like NTPC in this sector. Traditionally, PSU IPOs have always rewarded the shareholders. Going by the financials, fundamentals and track record, it is recommended to apply in IPO even at the upper band of Rs. 36. thanks