The sale of the stake through initial public offering (IPO) is in line with government’s plan to achieve a divestment target of INR400bn ($7.2bn).
A senior Power Ministry official was quoted by Hindu Business Line as saying that the government is planning to offer 5% discount to for retail investors during the stake sales, besides adding that the existing face value of each equity stake would be split to shares of face value of INR10 ($0.18) each.
The government has also permitted the employees of THDC to participate in the stake sale, however, limiting the sale capacity to $3,624.
THDC India was set up in 1988 as a joint venture between Government of India and Uttar Pradesh State to develop, operate and maintain the 2,400MW Tehri hydro power project.
Currently, the company’s portfolio comprises 1,400MW installed capacity alongside three projects of 1,468MW that are under construction.
