Government To Sell Up To 6% Stake In NHPC Via Offer For Sale

The central government on 2 June launched an offer for sale (OFS) of NHPC Limited, offering up to 6% of its holding at a floor price of ₹71 a share.

The base offer covers 3% of NHPC's equity, with an additional 3% available through a green shoe option if investor demand exceeds the base tranche. A full exercise of the green shoe would result in the sale of over 60.27 crore shares, potentially raising around ₹4,200 crore for the exchequer.

The offer opened for non-retail investors on 2 June and will open for retail investors on 3 June.

NHPC Ltd shares closed 2.31% lower at ₹77.19 on Monday ahead of the sale. At 12:40 PM on Tuesday, the shares were down by more than 5.47%, trading at ₹72.99.

Deal Details

• Base offer: 3% stake
• Green shoe option: Additional 3%
• Total potential divestment: 6%
• Floor price: ₹71 per share
• Estimated proceeds at full exercise: Around ₹4,200 crore
• Non-retail bidding: 2 June
• Retail bidding: 3 June

Third PSU Disinvestment This Fiscal

The NHPC sale is the third public sector OFS of FY27. The government sold a 2% stake in Coal India last week, raising ₹5,542 crore, and offloaded 8.08% in the Central Bank of India in May for ₹2,266 crore. Combined disinvestment proceeds for FY27 now stand at ₹7,808 crore before the NHPC transaction closes.

The FY27 Budget has set a disinvestment and asset monetisation target of ₹80,000 crore, more than double the ₹33,837 crore in revised estimates for FY26. The government has a long way to go against that target.

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About NHPC

NHPC is a Navratna public sector undertaking under the Ministry of Power and one of India's largest hydroelectric power generators.

The company reported a 71% jump in net profit in Q4FY26, making it one of the stronger performers among public sector power companies heading into the divestment.

Sources:

The Hindu Businessline

NDTV