NHPC share price tanks around 6% after fundraise move through the OFS; check floor price and other details
NHPC shares fell nearly 6% following the Indian government's announcement to sell a 6% stake through an offer for sale. The move is part of a disinvestment strategy, with shares priced at ₹71 each, allowing retail and non-retail investors to participate.
State-owned company NHPC declined almost 6% on Tuesday, June 2 after it announced that the Indian Government will sell up to 6% stake in the company through offer for sale route
The move is part of the government's ongoing disinvestment programme and offers investors an opportunity to acquire shares in one of India's largest hydropower companies at a floor price of ₹71 per share.
NHPC stock lost as much as 5.6% to its day's low of ₹72.86. It has been under pressure recently, down 12% in 1 month, 5% in 6 months and 16% in 1 year. However, it has given multibagger returns in the long term, rising 183% in 5 years.
According to the notice issued by the Ministry of Power on June 1, 2026, the President of India, acting through the Ministry of Power, proposes to sell 30,13,51,044 equity shares, representing 3% of NHPC's paid-up equity capital, through the stock exchange mechanism. The government has also retained an oversubscription option to sell an additional 30,13,51,044 shares, equivalent to another 3% stake, taking the total potential divestment to 6% of the company's equity capital.
The OFS will be conducted over two trading sessions. Non-retail investors will be permitted to bid on June 2, while retail investors, eligible employees and non-retail investors opting to carry forward unallotted bids will be allowed to participate on June 3.
In the notice, the Ministry of Power stated, "The Seller proposes to sell 3.00% of the paid-up equity (equivalent to 30,13,51,044 equity shares) shares held in the Company having a face value of ₹10 each on June 2, 2026."
The government further clarified that if the oversubscription option is fully exercised, the total number of shares offered would rise to 60,27,02,088 equity shares, representing 6% of NHPC's paid-up equity share capital.
The floor price for the OFS has been fixed at ₹71 per equity share. Investors can place bids above the floor price, while retail investors will also have the option to bid at the cut-off price determined through the bidding process.
"The floor price of the Offer shall be ₹71.00 (Rupees Seventy one only) per equity share," the government said in the filing.
OFS details
As per the OFS guidelines, 10% of the offered shares will be reserved for retail investors. Individual investors placing bids worth up to ₹2 lakh across stock exchanges will qualify under the retail category. Any unsubscribed portion from the retail segment may subsequently be allocated to eligible non-retail investors.
The government has also proposed an employee reservation component. Up to 45,20,265 shares may be offered to eligible NHPC employees. Employees can apply for shares worth up to ₹5 lakh, although bids up to ₹2 lakh will receive priority consideration during allotment.
For institutional participation, a minimum of 25% of the offer size has been reserved for mutual funds and insurance companies, subject to receipt of valid bids at or above the floor price. Any unsubscribed portion from these categories can be allocated to other eligible bidders.
The OFS notice further stated that allocation in the non-retail category will be made at or above the cut-off price, while retail investors may either bid at a specific price above the floor price or opt for the cut-off price route.
ICICI Securities, Goldman Sachs (India) Securities Private Limited and SBICAP Securities Limited have been appointed as brokers to the seller for conducting the transaction.
The proposed stake sale forms part of the government's broader asset monetisation and disinvestment strategy. Given NHPC's position as a leading hydroelectric power producer and the attractive floor price of ₹71 per share, market participants will closely monitor investor response during the two-day bidding process. If fully subscribed along with the oversubscription option, the OFS would result in the government divesting up to 6% of NHPC's equity capital while continuing to remain the company's promoter.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.