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The government's OFS in NHPC was subscribed 3.47 times on its first day, prompting the Centre to exercise the full greenshoe option and expand the stake sale to 6%.
The government had on Monday announced the OFS with a base offer of 3% of its equity in NHPC.New Delhi: The government's Offer for Sale (OFS) in NHPC Ltd received a strong response from investors on the first day, with the issue being subscribed 3.47 times, prompting the Centre to exercise the entire greenshoe option.
The government had on Monday announced the OFS with a base offer of 3% of its equity in NHPC and an additional 3% greenshoe option in the event of oversubscription. The floor price for the offer was fixed at ₹71 per share, a discount of about 8% to the stock's previous closing price of ₹77.19.
At the floor price, the stake sale is expected to fetch up to about ₹4,650 crore.
NHPC, a navratna public sector undertaking, is India's leading hydropower producer with a growing presence in solar and wind energy projects.
Taking to the social media platform X, the department of investment and public asset management (Dipam) secretary Arunish Chawla said that the OFS attracted participation from investors, with bids exceeding the shares on offer by 3.47 times on the first day. Allocation of shares will be made on a price-priority basis, he said.
Following the strong demand, the government has decided to exercise the entire greenshoe option, increasing the size of the stake sale to 6% of NHPC's equity, he said.
The OFS opened to non-retail investors on 2 June, while retail investors and eligible employees can place bids on 3 June.
The government currently holds a 67.4% stake in NHPC, equivalent to 6.77 billion shares, as per information available on the Dipam website. Based on the previous day's closing price, the government's holding is valued at about ₹52,259 crore, while NHPC's total market capitalisation stands at ₹77,538 crore.
Disinvestment programme
Following the completion of the OFS, the government's shareholding is expected to reduce to around 6.17 billion shares. Despite the stake sale, the government will remain the majority shareholder in NHPC with a 61.4% stake.
The robust response is expected to boost the Centre's disinvestment programme for FY27. The government has set a target to raise ₹80,000 crore through disinvestment and asset monetisation in FY27. The government is diluting part of its shareholding in NHPC through the OFS route.
Earlier, the government had undertaken the stake sale in Coal India Ltd, with the offer-for-sale (OFS) drawing bids worth more than eight times the shares on offer on the first day.
The NHPC OFS came days after the government launched OFSs in Coal India Ltd and the Central Bank of India. The government is using the OFS route more actively this year to garner higher receipts while also improving public shareholding in state-run companies.
The government garnered ₹16,885.56 crore from disinvestment in FY26, compared with ₹10,163.02 crore in the previous fiscal year, according to Dipam data. Besides disinvestment receipts, ₹28,420.49 crore was raised through asset monetisation in FY26. There were no such asset monetisation receipts before FY26.
About the Author
Dhirendra Kumar
Dhirendra Kumar is a seasoned policy reporter with about 20 years of experience in deep, on-ground reporting across key economic and governance sectors. His work spans finance, public expenditure, disinvestment, public sector enterprises, textiles, trade, consumer affairs, and agriculture, with a strong focus on uncovering structural policy shifts and their real-world impact.<br><br>Kumar has been awarded the Chaudhary Charan Singh Award for Excellence in Journalism in Agricultural Research and Development, recognising his contribution to reporting on critical issues in the farm sector. He has also been a recipient of a fellowship in international trade from the National Press Foundation, which has further strengthened his coverage of global trade dynamics and their implications for India.<br><br>Kumar is known for breaking complex policy developments into clear, accessible stories. His reporting focuses on uncovering under-reported trends, explaining policy shifts, and helping readers stay informed about developments that shape India’s economic landscape.
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