NHPC OFS: Issue opens for retail investors, stock up 5%; check Day 1 subscription status

In its third OFS of FY27, the government on Monday announced plans to sell up to a 6% stake in NHPC at a floor price of ₹71 per share.

The OFS opened for non-retail investors on Tuesday, June 2, while the retail portion opens on Wednesday, June 3.

Shares of the company ended at ₹72.29 apiece on the NSE on Tuesday, down 6.36%.

Day 1 status update

The government on Tuesday decided to exercise the green shoe option in the 6% stake sale in the state-owned NHPC through an offer for sale (OFS), following an overwhelming response from investors on the first day of subscription.

The OFS received an encouraging response from investors and was oversubscribed 3.47 times on the first day.

"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," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.

OFS details

The OFS includes a base offer of 3% of the government’s equity in NHPC and an additional 3% green shoe option.

The floor price of ₹71 per share is at an 8% discount over Monday's closing price of ₹77.19 on the BSE. On Monday, the stock ended 2.07% lower than Friday's close.

The OFS opened for non-retail investors on Tuesday, while for retail investors it will open on Wednesday.

The sale of over 60.27 crore shares representing a 6% stake at a floor price of ₹71 a share would fetch about ₹4,200 crore to the exchequer.

This is the third OFS of a public sector company in the current fiscal year.

Last week, the government sold a 2% stake in Coal India via OFS to mop up ₹5,542 crore. In May, it sold 8.08% of the Central Bank of India to raise ₹2,266 crore. Together, the disinvestment proceeds so far in FY27 stand at ₹7,808 crore.

The FY27 budget has estimated a mop-up of ₹80,000 crore through disinvestment and asset monetisation, more than double the ₹33,837 crore as per the revised estimates for FY26.

About NHPC

NHPC Limited (formerly National Hydroelectric Power Corporation) is a Navratna public sector undertaking (PSU) under the Government of India's Ministry of Power.

Incorporated in 1975, it is India’s largest hydropower development company with an authorised capital of ₹1.5 lakh crore.

NHPC was upgraded to Navratna status by the Government of India in August 2024. Prior to this, the company had held Miniratna Category-I status since 2008.