Govt to exercise greenshoe option as NHPC OFS gets oversubscribed
New Delhi, June 2
The government's Offer for Sale in National Hydroelectric Power Corporation Limited was oversubscribed 3.47 times on the first day of bidding for non‑retail investors, and it exercised the entire 3 per cent greenshoe option, a regulatory filing said on Tuesday.
The total stake on offer was raised to 6 per cent from the original 3 per cent. The sale, launched with a floor price of Rs 71 per share, will allocate shares on a price‑priority basis.
Retail investors and eligible employees will be able to participate in the OFS on June 3.
"A total of 6,02,70,210 Equity Shares i.e. 10 per cent equity shares of the offer would be reserved for Retail Investors, subject to receipt of valid bids," the statement noted.
Additionally, up to 45,20,265 equity shares may be offered in addition to the 45,20,265 Equity Shares aggregating up to 90,40,530 equity shares of the company offered under the Employee Offer to the eligible employees of the Company.
Eligible employees may apply for equity shares up to Rs 5 lakh. The OFS is being conducted through the stock exchanges to contribute towards the Centre's disinvestment objectives for FY27.
Notably, shares of NHPC on Tuesday closed 6.9 per cent lower at Rs 71.93 per share on the NSE.
India's leading hydropower and renewable energy company NHPC is a Navratna public sector undertaking under the Ministry of Power.
A major milestone for Jammu and Kashmir's power sector was achieved with the successful execution of the first blast for the 240 MW Uri-I Stage-II Hydro Electric Project by NHPC earlier this week, marking the formal commencement of key construction activities.
NHPC is also executing multiple large-scale projects in Jammu and Kashmir, largely through joint ventures such as Chenab Valley Power Projects Limited (CVPPL) and Ratle Hydroelectric Power Corporation Limited (RHPCL).
— IANS
Reader Comments
Interesting to see such strong demand for a PSU even when the stock dropped 6.9% today. The floor price at Rs 71 seems reasonable given NHPC's role in India's renewable energy push. Not bad for a Navratna company.
Disinvestment is good but at what cost? The government keeps selling profitable PSUs like NHPC while we urgently need investment in hydropower. The J&K projects are critical for the region's development. Wish the timing was better.
Happy to see retail investors getting a 10% reservation and employees too. NHPC's Uri-I project blast is great news for J&K power sector. Long-term holders will benefit from India's renewable energy goals. 👏
Frankly, I'm skeptical about these OFSs. The stock dropped 6.9% on the very day of the offer. Seems like institutional investors are taking advantage while retail might get stuck. Better to wait and watch rather than rush. Just my two paise.
Oversubscribed 3.47 times on the first day alone! That's impressive even with the stock price falling. The greenshoe option being fully exercised shows the government is serious about meeting disinvestment targets. Renewable energy is the future.
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