Govt launches NHPC OFS at Rs 71/share; 3% base offer, 3% greenshoe option
New Delhi, June 2
After successful offer for sale in Coal India and Central Bank, Government of India launches the offer-for-sale in NHPC with a base offer of 3 per cent of its equity. The floor price is fixed at Rs 71/- per share. The OFS opens for non-retail investors on June 2, and for retail investors on June 3.
"Government of India announces OFS in NHPC Ltd with a base offer of 3 per cent of its equity and an additional 3 per cent Green Shoe Option in case of over subscription," the DIPAM Secretary, Arunish Chawla said on X. "Floor price fixed at Rs 71/- per share. OFS opens for non-retail investors on 2nd June 2026 and for retail investors on 3rd June 2026," the Secretary added.
A stock exchange filing by the company noted that the government proposes to sell 3.00 per cent of the paid-up equity, equivalent to 30,13,51,044 equity shares, held in the company having a face value of Rs 10/- each as the base offer size.
The filing stated that the government has an option to additionally sell up to 30,13,51,044 equity shares under the oversubscription option.
If the oversubscription option is fully exercised, the equity shares forming part of the base offer size and the oversubscription option will represent 6.00 per cent of the total paid-up equity share capital of the company as on March 31, 2026, collectively representing 60,27,02,088 equity shares.
Additionally, up to 45,20,265 equity shares may be offered to the eligible employees of the company. Eligible employees may apply for equity shares up to Rs 500,000, though any bids by eligible employees will be considered for allocation, in the first instance, for an amount up to Rs 200,000 only.
This equity sale follows the successful completion of similar stake divestments in other state-owned enterprises earlier this year. The government recently completed an OFS for Coal India Limited, which received significant institutional interest.
"Offer for Sale in Coal India Limited received enthusiastic response from investors and was over subscribed 8.14 times on the first day. Allocation will be on price priority basis. Government has decided to exercise the entire green shoe option," the DIPAM Secretary said in a separate post on X.
The government also executed a stake sale in the Central Bank of India.
"Offer for Sale in Central Bank of India received enthusiastic response from investors and was over subscribed 2.35 times on the first day," the DIPAM Secretary posted on X regarding the banking divestment.
While the NHPC transaction is underway, other major public sector disinvestment proposals remain on the horizon. The planned stake sales for Life Insurance Corporation of India (LIC) and IDBI Bank are still in the pipeline.
The government put a Rs 47,000 crore disinvestment target for the 2025-26 budget.
— ANI
Reader Comments
Another OFS after Coal India and Central Bank? Government is clearly in a hurry to meet the ₹47,000 crore target. But NHPC has strong fundamentals - cheap hydro power, no fuel cost worries. Long-term investors should consider this. 📈
As someone who tracks Indian PSUs, I think NHPC is an interesting play. Clean energy focus, government backing, and the ₹71 floor price seems attractive. But I worry about the constant dilution of government stake - it affects long-term stability.
Ye sab OFS ka kya hai? Ek baar me sab kuch bech denge kya? 😄 But joke aside, NHPC is a solid company. Hydro projects take time but give stable returns. Employee quota of ₹5 lakhs is a nice gesture for the staff. Good luck to all applying!
The government should focus on improving NPAs and governance in PSUs instead of just selling stakes. NHPC has potential but needs better project management. ₹71 might be fair but I'm not convinced about the timing - market is volatile right now.
Retail investors should definitely apply! NHPC is a dividend paying company with monopoly in hydro sector. The 3% greenshoe option shows confidence. And compared to LIC or IDBI, NHPC is cleaner in terms of balance sheet. Let's see how much oversubscription happens! 🚀
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