NHPC maiden tax-free bond issue may hit market on Oct 15

State-run power producer NHPC is likely to hit the market with its maiden tax-free bonds issue worth Rs 1,000 crore on October 15.

The company filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on Monday.

"We are expecting to come out with Rs 1,000 crore tax-free bonds issue on October 15," NHPC Director (Finance) ABL Srivastava said.

The company would come out with the issue in a single tranche, he said.

For this financial year, NHPC's construction budget is Rs 3,450 crore. Of the amount, around Rs 1,831 crore is planned to be garnered by way of debt.

The country's largest hydro power is awaiting approvals for about ten projects having total capacity of 8,801 MW.

When asked about government selling stake in the company, Srivastava said it would be decided by the Department of Disinvestment. The disinvestment is likely through the Offer for Sale (OFS) route, he added.