NHPC OFS: Govt To Sell 3% More Stake Via Greenshoe Option; Base Offer Subscribed 3.47x

The government's Offer for Sale (OFS) in NHPC Ltd. was oversubscribed 3.47 times on the first day of bidding for non-retail investors, prompting it to exercise the entire greenshoe option and increase the stake sale size.

With strong demand seen during the initial round of bidding, the Centre will now divest an additional 3% stake under the greenshoe mechanism, taking the total offer size to 6% from the original base offer of 3%.

The allocation of shares will be carried out on a price-priority basis, according to the government. Retail investors and eligible employees will get an opportunity to participate in the OFS on June 3.

The government had launched the stake sale with a floor price of Rs 71 per share. 

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Through the transaction, it initially proposed to sell a 3% stake in NHPC, while retaining the option to offload another 3% in case of excess demand.

NHPC, a Navratna public sector undertaking under the Ministry of Power, is among India's leading hydropower and renewable energy companies. 

The strong investor participation reflects continued interest in the power and clean energy sectors amid the government's broader disinvestment programme.

The OFS is being conducted through the stock exchange mechanism and is expected to contribute towards the Centre's disinvestment objectives for the current financial year.

Notably, shares of NHPC on Tuesday settled 6.9% lower at Rs 71.93 apiece on the NSE, compared to a 0.43% rise in the benchmark Nifty 50.

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