Market regulator SEBI has sought clarifications from merchant bankers of National Hydroelectric Power Corporation on its draft IPO prospectus, while the offer document of Power Grid Corporation is still being examined.

NHPC filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) on April 2, while the country's largest power transmission utility PGCIL submitted its documents a fortnight later on April 17.

For NHPC, the "processing is complete and certain clarifications are awaited from lead managers" to the issue, according to information available with SEBI.

The company has appointed Enam Financial Consultants Pvt Ltd, Kotak Mahindra Capital Company and SBI Capital Markets Ltd as the lead managers to the issue.

PGCIL's draft prospectus is "under process" and a decision is expected "within 15 days", according to SEBI.

Power Grid has appointed Kotak Mahindra Capital Company as the lead manager to the issue.

The regulator can seek clarifications regarding the offer documents from merchant bankers. It issues directions within 15 days from the date of receipt of a satisfactory reply from the merchant bankers.

The stake sale in the companies was delayed as they did not meet the norm of minimum number of independent directors on their Board. NHPC was required to appoint five independent directors, while PGCIL must have seven such Board members.

Post-issue, government stake would come down to 86.36 per cent each in PGCIL and NHPC, reports The Economic Times.