The Government of India announced it will sell up to 6 percent stake in NHPC Limited through an offer for sale (OFS) starting Tuesday. The base offer is 3 percent of NHPC's equity with an additional 3 percent green shoe option available in case of oversubscription. The floor price for the shares has been fixed at ₹71 per share, representing an 8 percent discount to Monday's closing price of ₹77.19 on the BSE, according to the Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla.
The OFS will open for non-retail investors first, with retail investors expected to participate subsequently. The government set the floor price to encourage investor interest while balancing market conditions, as NHPC shares closed down 2.07 percent from the previous session. The green shoe option allows the government to sell an additional 3 percent stake if demand exceeds the base offer, potentially raising the total stake sold to 6 percent. This move follows the government’s broader strategy to divest stakes in public sector enterprises to raise funds and improve market liquidity.
This sale is part of the government's ongoing disinvestment program aimed at reducing its holdings in state-run companies to boost fiscal resources. NHPC, a key player in hydropower generation, has attracted investor attention due to its stable revenue streams and government backing. The 6 percent stake sale is among the latest in a series of divestments in the energy sector, which also includes recent sales in companies like NTPC and Power Grid Corporation. The floor price discount aligns with market practices to ensure successful subscription amid fluctuating stock prices.
The OFS will commence on Tuesday, June 2, 2026, with the final subscription details and allotment expected to be announced shortly after the close of the offer period, as per DIPAM disclosures.