The Indian government's Offer for Sale (OFS) of a 3% equity stake in NHPC Ltd was subscribed 3.47 times on its first day, prompting the Centre to exercise the full greenshoe option and increase the stake sale to 6%, according to livemint.com. The move aims to raise approximately ₹4,600 crore from the transaction.
The OFS was announced on Monday with a base offer of 3% equity in NHPC. The strong investor response led the government to fully exercise the greenshoe option, which allows for an additional sale of shares beyond the initial offer. This mechanism helped expand the stake sale to double the original size, reflecting robust demand from market participants, the report said.
This stake sale is part of the government’s broader strategy to divest its holdings in public sector undertakings to mobilize funds. NHPC, a key player in hydroelectric power generation, has attracted investor interest due to its strategic importance and stable business model. The ₹4,600 crore target from this OFS ranks among the significant government divestments in the energy sector this year.
The OFS subscription data and the government’s decision to exercise the full greenshoe option were reported on June 2, 2026. The final proceeds from the sale are expected to be confirmed once the transaction concludes, marking a notable milestone in the government’s ongoing asset monetization efforts.