NHPC IPO Basis of Allotment

NHPC Limited
(A Government of India Enterprise)

(Our Company was incorporated on November 7,1975 under the Companies Act, 1956 (the "Companies Act") as a private limited company under the name "National Hydroelectric Power Corporation Private Limited". The word 'private' was subsequently deleted on September 18,1976. Our Company was converted into a public limited company with effect from April l2,1986. On March 28,2008,our name was changed to our present name 'NHPC Lirnited'.

Registered and Corporate Office: NHPC Office Complex, Sector - 33, Faridabad 121 003, Haryana, India, www.nhpcindia.com, Company Secretary and Compliance Officer: Mr. vijay Gupta,
Email :companysecretary@nhpc.nic.in

PUBLIC ISSUE OF 1,67,73,74,015 EQUITY SHARES OF RS.10/- EACH (THE EQUITY SHARES") FOR CASH AT A PRICE OF RS.36/- PER EQUITY SHARE of NHPC LIMITED ("NHPC", "OUR COMPANY" OR "THE ISSUER") AGGREGATING RS.6038.55 CRORE (THE "ISSUE"). THE ISSUE COMPRISES A FRESH ISSUE OF 1,11,82,49,343 EQUITY SHARES BY NHPC (THE "FRESH ISSUE") AND AN OFFER FOR SALE OF 55,91,24,672 EQUITY SHARES BY THE PRESIDENT OF INDIAACTING THROUGH THE |MINISTRY OF POWER, GOVERNMENT OF INDIA (THE "SELLING SHAREHOLDER") (THE "OFFER FOR SALE"). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 1,63,54,39,665 EQUITY SHARES (THE "NET ISSUE") AND A RESERVATION OF 4,19,34,350 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE "EMPLOYEE RESERVATION PORTION"), AT THE ISSUE PRICE. THE ISSUE SHALL CONSTITUTE 13.64% OF THE POST-ISSUE CAPITAL OF NHPC.

In terms of Rule 19(2)(b) of the Securities Contract Regulation Rules, 1957 ("SCRR"), this being an Issue for less than 25% of the post-Issue capital, the Issue was made through the 100% Book Building Process wherein at least 60% of the Net Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") (including 5% of the QIB portion that was to be specifically allotted to mutual funds), further, up to 10% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and up to 30% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above the Issue Price.

The Issue received a total of 1346850 applications for 39602672256 equity shares resulting in 23.61 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional Bidders and Retail Individual Bidders categories and Eligible Employees are as under: (Before technical rejections)

Final Demand

A sample of the final demand at different bid prices within the price band of Rs. 30 to Rs. 36 is as under:

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Limited ("BSE") on 25.08.2009. The final demand at different bid prices and allocation of Equity Shares in the following categories is as under:

A. Eligible Employees

The Basis of Allocation to the Eligible Employees of the NHPC, who have bid at cut-off or at the Issue Price of Rs. 36/- per Equity Share, was finalized in consultation with the BSE. The total number of shares allotted in this category is 24109925. The undersubscribed portion of 17824425 Equity Shares have been spilled over to QIBs, Non-Institutional Bidders and Retail Individual Investor Bidders Category in the ratio of 60:10:30.

B. Allocation to Retail Individual Investors (AfterTechnical Rejections) (Including ASBA Appllcations)

The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs. 36/- per Equity Share, was finalized in consultation with the BSE. This category has been over-subscribed to the extent of 3.68 times. Out of 1334906 applications for 1858938893 Equity Shares, 152159 applications for 179260725 Equity Shares were made under ASBA process. 1302417 applications for 1825072200 Equity Shares were found valid and they were considered for allotment. The total number of shares allotted in Retail Individual Investor category is 495979228 Equity Shares (including 5347328 Equity Shares being 30% of the unsubscribed portion of the employee reservation portion) to 1074234 successful applicants. The category-wise details of the Basis of Allocation are as under:

C. Allocation to Non Institutional Investors (After Technical Rejections)

The Basis of Allocation to the Non-Institutional Investors, who have bid at the Issue Price of Rs. 36/- per Equity Share, was finalized in consultation with the BSE. This category has been over-subscribed to the extent of 54.75 times. 5412 applications for 9051606900 Equity Shares were found valid and they were considered for allotment. The total number of Equity Shares allotted in this category is 165326408 (including 1782442 Equity Shares being 10% of the unsubscribed portion of the employee reservation) to 4859 successful applicants. The category-wise details of the Basis ofAllocation (sample) are as under:

D. Allocation to QIBs

380 valid applications were received in this category and allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available i.e. 49597923 and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares i.e. 942360531. 10694655 Equity Shares being 60% of the unsubscribed portion of the employee reservation were added to the QIB category.

The Board of Directors of the company at its Meeting held at Faridabad on 26.08.2009 has adopted the basis of allocation of shares as approved by the BSE and has allotted the shares to various successful applicants.

Despatch of the CAN-cum-Refund Orders, allotment advice, intimation regarding refunds through electronic mode (ECS, RTGS, NEFT or Direct Credit) and notices (where applicable) have been dispatched to the address of the investors as registered with the depositories has been completed on August 27,2009. Instructions to Self Certified Syndicate Banks to transfer funds related to equity shares allotted, if any, and unblock the remaining amount have been given on August 26,2009. In case the same is not received within ten days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The equity shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has taken steps to get the Equity Shares admitted for trading on the Bomibay Stock Exchange Limited and National Stock Exchange of India Limited and has received their approvals for admission for trading from September 1,2009 i.e. within seven working days from the date of approval of the basis of allocation. The lSIN Number for NHPC Limited is lNE848E01016.

All future correspondence in this regard may kindly be addressed to the Registrars to the Issue quoting full name of the First/ Sole applicant, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the address given below:

Karvy Computershare Private Limited
Unit: NHPC
Plot No. 17 to 24, Vitharao Nagar, Hitech City Road,
Madhapur, Hyderabad - 500081, Fax: 040-23420814
Email: einward.ris@Karvy.com