It has been a while since I've had the chance to post about a forthcoming IPO - a shame because historically, IPO Watch has been one of the most popular sections on this website.

So I was pleased for more than one reason to learn of National Hydroelectric Power Corp's plans to sell a 13.8% stake in an IPO to raise $580m. Growing at over 8% per annum, India needs a lot more power and they will need all the capital they can get to obtain it.

Apart from which, I like Hydropower - it is proven technology, can deliver clean energy in gigawatt scale and does so at the lowest possible cost compounded over the lifetime of the plant - up to 200 years. So my personal view is that exploiting fully amortized hydropower is an excellent long-term bet. But selling off only 13.8% of your company strikes me as a bit blasé - and some would unkindly sum up the attitude behind it as this;

we want your money, but we won't concern ourselves with what you think and will care even less, because you will always be a minority shareholder.

I've just been reading a fascinating and revelationary book by Eric D. Beinhocker "The origin of wealth - evolution, complexity and the radical remaking of economics". and I was very taken by one point (amongst many) that he made - essentially that mankind has evolved a system for fairness and reciprocity in business, but if the conditions for reciprocity, fairness and trust are not replicated following the business transaction, then civilization does not advance much beyond the Machiguenga people of the Peruvian rain forest (I abbreviate and exaggerate for effect, but it's not an unfair synopsis).

Why am I saying this?

Because there is another Indian hydropower company Jaiprakash Hydro Power, which although much smaller, continues to earn respect and good ratings, not least because far more of its shares are traded on the open market.

Going public with an IPO is about trusting the market and the investors to have the best interests of your company at heart. That's why deep down, I believe that anything less than a 50% offering is a long-term mistake.

So I hope NHP reconsider and think big by trusting big. And I dearly hope many other alternative energy companies do not eschew the market either.

Because the public markets still leave the venture capitalists and the banks for dust when it comes to raising larger amounts of capital at lower overall cost.