- The Centre may sell up to 6% stake in NHPC Ltd via an offer-for-sale starting Tuesday
- The base stake sale is 3% with an option to sell an additional 3% under the Green Shoe option
- Floor price for NHPC shares is fixed at Rs 71 per equity share for the offer-for-sale
The Centre may sell up to 6% stake in NHPC Ltd, earlier known as the National Hydroelectric Power Corporation, via an offer-for-sale starting on Tuesday, according to the information shared by the Department of Financial Services on Monday.
Through the OFS, the Centre intends to offload a base stake of 3% in the company, with an option to sell an additional 3% under the Green Shoe mechanism in the event of strong investor demand.
The floor price for the share sale has been fixed at Rs 71 per equity share, offering investors an opportunity to participate in one of the country's leading power generation companies.
If the Green Shoe option is fully exercised, the government could divest a total of 6 per cent of its holding in NHPC through the issue.
According to the announcement, the OFS will open for non-retail investors on June 2, while retail investors will be able to place bids on June 3.
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The sale will be conducted through the stock exchange mechanism in accordance with market regulations.
The move forms part of the Centre's broader strategy to unlock value from public sector enterprises and mobilise resources through strategic stake sales.
NHPC, a Navratna public sector undertaking under the Ministry of Power, plays a significant role in India's renewable and hydroelectric power generation sector.
Market participants will closely watch investor response to the OFS, particularly given the company's strong presence in the clean energy segment and the government's continued focus on infrastructure and energy-sector reforms.
The transaction is expected to contribute to the government's disinvestment targets for the current financial year.
Notably, the shares of NHPC closed 2.31% lower at Rs 77.05 apiece on the NSE, compared to a 0.7% decline in the benchmark Nifty 50.
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