NHPC shares jump 5% as retail investors bid in Rs 4,200 crore OFS; Check subscription status

Shares of NHPC Limited rallied nearly 5 per cent on Wednesday, June 3, after the government's offer for sale (OFS) attracted strong investor demand. The stock rose over 5 per cent to Rs 76.17 apiece on the NSE as the OFS opened for retail investors.

The Centre on Monday announced plans to sell up to a 6 per cent stake in NHPC through an OFS at a floor price of Rs 71 per share. The issue opened for non-retail investors on Tuesday, while the retail portion opened on Wednesday.

NHPC shares had ended Tuesday's session at Rs 72.29 apiece on the NSE, down 6.36 per cent.

OFS sees strong demand on first day

The government decided to exercise the green shoe option after the OFS received an overwhelming response from institutional investors on the first day of bidding.

According to the Department of Investment and Public Asset Management (DIPAM), the issue was oversubscribed 3.47 times on Day 1.

"Offer for sale in NHPC Limited received an enthusiastic response from investors and was oversubscribed 3.47 times on the first day. Allocation will be on a price priority basis. The government has decided to exercise the entire green shoe option. Retail investors and employees get to bid on 3rd June 2026," DIPAM Secretary Arunish Chawla said in a post on X.

As of 11:10 am on Wednesday, the retail portion had received bids for 56,78,347 shares against an issue size of 3,01,35,105 shares, translating into around 19 per cent subscription.

OFS details

The OFS comprises a base offer of 3 per cent of the government's equity holding in NHPC and an additional 3 per cent stake under the green shoe option.

The floor price of Rs 71 per share was set at an around 8 per cent discount to Monday's closing price of Rs 77.19 on the BSE. On Monday, the stock had closed 2.07 per cent lower than its previous close.

The sale of more than 60.27 crore shares representing a 6 per cent stake is expected to fetch around Rs 4,200 crore for the government.

Disinvestment drive gathers pace

The NHPC OFS is the third stake sale by the government in a public sector company during FY27.

Last week, the government sold a 2 per cent stake in Coal India Limited through an OFS and raised Rs 5,542 crore. In May, it sold an 8.08 per cent stake in Central Bank of India, generating Rs 2,266 crore.

With these transactions, the government's disinvestment proceeds in FY27 have reached Rs 7,808 crore so far.

In the Union Budget for FY27, the government has projected collections of Rs 80,000 crore through disinvestment and asset monetisation, more than double the revised estimate of Rs 33,837 crore for FY26.

About NHPC

NHPC, formerly known as National Hydroelectric Power Corporation, is a Navratna public sector undertaking under the Ministry of Power. The company is primarily engaged in hydroelectric power generation and is one of India's largest hydropower developers.