Shares of NHPC soared 5% on Wednesday, June 3, after the offer for sale (OFS) opened for retail investors today. This comes after the government exercised the oversubscription option in NHPC OFS.
NHPC shares advanced up to 5.12 % at Rs 75.99 apiece. The scrip was trading 4.65% higher by 9:42 am, while the benchmark Nifty 50 index remained 0.88% down.
On Wednesday, June 3, NHPC informed the exchanges following market hours that government has exercised the oversubscription option, increasing total offer size to 6% stake, or 60.3 crore shares. Meanwhile, allocation of 10% equity shares of the offer, reserved for retail investors opens on Wednesday, June 3.
On Monday, Department of Financial Services informed about the government's plan to offload a base stake of 3% in NHPC, 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 a chance to participate in one of the country's leading power generation companies. This sale is a part of the Centre's broader strategy to unlock value from public sector enterprises and mobilise resources through strategic stake sales.
After the Q4 earnings, the street has actively re-rating on NHPC stock. The consensus target price has been steadily revised upwards to the Rs 89–91 range, implying a 15–20% upside from current levels. Furthermore, management's ambitious pipeline, specifically the plan to commission three more units of the Subansiri project by June, provides a clear, actionable runway for top-line growth over the next 24 months.
Analysts from CLSA, Elara Capital and Investec tracking NHPC have a 'buy' rating on the stock, Antique Stock Broking recommend a 'hold', while Kotak Securities suggest a 'sell', according to Bloomberg data.
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