NHPC's share price rose 5.08% on June 3 as the central government launched an Offer for Sale (OFS) for retail investors. The OFS comprises a base issue of 3% equity with an additional 3% green shoe option to be exercised if investor demand is strong. The stock opened at ₹75.56 per share, up from the previous close of ₹72.29, according to livemint.com.
The OFS was launched on June 1 by the Indian government, allowing retail investors to participate in the sale of NHPC shares. The green shoe option provides flexibility to increase the sale size by 3% if demand exceeds expectations. NHPC's share price surge during the trading session reflected positive investor sentiment despite broader market pressures, as reported by livemint.com.
This OFS is part of the government's ongoing divestment strategy to raise funds by selling stakes in public sector undertakings. NHPC's OFS follows similar sales in other state-owned companies, contributing to the government's fiscal management efforts. The green shoe option mechanism is commonly used in Indian equity sales to stabilize share prices and meet excess demand, according to livemint.com.
The OFS remains open for retail investors, with the government prepared to exercise the green shoe option depending on subscription levels. NHPC's share price performance on June 3 highlights market interest ahead of the OFS closure, as detailed by livemint.com.