NHPC shares fell 4% after government launched ₹4,200-crore OFS.
Government plans to sell up to 6% stake in NHPC.
OFS floor price of ₹71 implies an 8% discount.
NHPC Shares Fall 4% As Govt Launches ₹4,200-Cr OFS At 8% Discount
Centre plans to sell up to 6% stake in hydropower major through offer for sale, with floor price set at ₹71 per share
NHPC limited
Summary
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Shares of NHPC fell more than 4% in early trade on Tuesday after the government launched an offer for sale (OFS) to divest up to a 6% stake in the state-run hydropower producer at a discount to the prevailing market price.
The stock was trading at ₹74.07 in morning trade, down 4.05% for the day. With the latest decline, NHPC shares have fallen more than 6% over the past two sessions and are down around 15% over the last year, underperforming the Nifty 50's decline of 5.9% during the same period.
The Department of Investment and Public Asset Management (DIPAM) on Monday announced the stake sale, offering a base issue size of 3% of NHPC's equity capital along with a green shoe option to sell an additional 3% stake in the event of strong investor demand.
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OFS To Raise ₹4,200 Crore
The OFS opens for non-retail investors on June 2, while retail investors will be able to bid on June 3.
The floor price has been fixed at ₹71 per share, representing a discount of around 8% to NHPC's previous closing price. At the floor price, the sale of more than 60.27 crore shares, equivalent to a 6% stake, could fetch approximately ₹4,200 crore for the government.
According to exchange data, the government held a 67.4% stake in NHPC at the end of the March quarter.
The latest divestment follows recent government stake sales in other public sector companies, including Coal India and Central Bank of India, as part of its broader disinvestment programme.
Strong Earnings
The OFS announcement comes shortly after NHPC reported a strong performance for the March quarter. The company posted a 68.5% year-on-year increase in net profit to ₹1,549 crore in Q4FY26, while revenue rose 20% to ₹2,816 crore.
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Despite the strong earnings performance, the discounted share sale weighed on investor sentiment, leading to selling pressure in the stock.
NHPC, India's largest hydropower producer, currently commands a market capitalisation of around ₹74,500 crore and remains one of the country's key renewable energy and hydroelectric power companies.