Govt issues up to 6% OFS in NHPC at Rs 71/share; follows recent Coal India, LIC stake sales
New Delhi, June 1
The government has issued an Offer For Sale in state-run hydropower major NHPC Ltd, with a base issue of 3% equity and an additional 3% Green Shoe Option if oversubscribed. The floor price is set at Rs 71 per share, the Department of Investment and Public Asset Management said on Monday.
The OFS will open for non-retail investors on Tuesday and for retail investors on Wednesday, according to the tweet by Secretary, Department of Investment and Public Asset Management.
The NHPC OFS comes soon after the Centre completed stake sales in other large PSUs, including Coal India and Central Bank of Inida, as it pushes ahead with its disinvestment and asset monetisation plan for FY26. LIC and IDBI Bank are in the pipeline. The back-to-back OFS calendar reflects the government's effort to tap market sentiment and meet its non-debt capital receipts target.
The two-day structure reserves June 2 for institutional investors, while retail investors and employees can bid from June 3. The 3% base offer plus 3% Green Shoe means the government can sell up to 6% of NHPC if demand is strong, reducing its current 70.95% holding.
NHPC is a Navratna PSU under the Ministry of Power and India's largest hydropower company. It operates over 7,000 MW of hydro and renewable capacity across J&K, Himachal Pradesh, Uttarakhand, Arunachal Pradesh and other states. The company is also expanding into solar and pumped storage to align with India's clean energy push.
The Rs 71 floor price will be the minimum bid for all categories. Retail investors can bid up to Rs 2 lakh and usually get a discount to the cut-off price, with 10% of the issue reserved for them. The Green Shoe Option gives flexibility to raise more funds if the base 3% is oversubscribed.
Following recent OFS deals in Coal India and LIC, investor appetite for PSU stocks with steady dividends and valuation comfort has stayed firm. NHPC's dividend record and clean energy pivot are expected to draw retail interest.
Proceeds from the sale will go to the government's disinvestment receipts. The Centre has budgeted Rs 47,000 crore from disinvestment and asset monetization in FY26. With markets near recent highs, the NHPC stake sale adds momentum to a busy PSU divestment pipeline in the coming months.
— ANI
Reader Comments
Govt keeps selling PSUs like there's no tomorrow. First Coal India, then LIC, now NHPC. Are they trying to meet some revenue target? Hope they don't dilute too much and leave these companies to private players. But yeah, for short-term gain, OFS can be good for investors.
I invested in Coal India OFS and got decent returns. Now looking at NHPC – hydropower is the future with India's clean energy push. The fact that they have 7,000 MW capacity and expanding into solar makes it attractive. Rs 71 seems like a good entry point.
Another disinvestment. While I understand the need for funds, I feel the govt should retain majority in strategic sectors like power. NHPC runs projects in sensitive border areas like J&K and Arunachal – foreign hands should not get a foothold. But retail participation is fine.
I am skeptical. PSU stocks often underperform after OFS because of supply overhang. But NHPC's dividend yield is attractive for long-term. Let me check the retail discount offered... if it's 5% or more, I might bid for 1-2 lots. Timing matters - market is near highs.
Great news for retail investors! Finally, a chance to own a piece of India's largest hydropower company. The clean energy pivot is smart – pumped storage will be crucial for grid stability. I'll definitely apply through my trading account. 💪
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