The government’s Offer for Sale (OFS) in NHPC has opened for retail investors and employees on June 3, and the response so far has been impressive.
Strong demand from institutional investors on the first day prompted the government to increase the size of the share sale.
As a result, the stake being sold has doubled from 3% to 6%.
The move could help the government raise around ₹4,200 crore.
What Is the NHPC OFS?
Under the Offer for Sale, the government is selling up to 60.27 crore NHPC shares.
Initially, the offer included a 3% stake, equivalent to 30.13 crore shares.
However, after receiving heavy demand from institutional investors, the government exercised the full green shoe option and added another 3% stake.
This increased the total offer size to 6% of the company’s equity.
Retail investors and eligible employees can now participate in the OFS.
NHPC Shares Available at a Discount
The floor price for the NHPC OFS has been fixed at ₹71 per share.
This is lower than the market price of NHPC shares, which were trading around ₹75-76 on the NSE when the offer opened.
The discount is one of the key reasons attracting investor interest.
Buying shares below the prevailing market price gives investors an immediate pricing advantage if market conditions remain favorable.
Strong Demand From Institutional Investors
The OFS received an overwhelming response from non-retail investors on the first day.
According to government officials, the institutional portion was subscribed 3.47 times, indicating strong confidence in the company and its valuation.
Following this demand, the government decided to sell the additional shares available under the green shoe option.
Officials said allocations will be made based on price priority.
Should Investors Consider Applying?
Market experts believe the offer looks attractive at the current price.
According to analysts at SBI Securities, the valuation appears reasonable and the OFS price offers a good entry opportunity for long-term investors.
Some experts estimate NHPC’s fair value to be around ₹90 per share, which is significantly higher than the OFS floor price of ₹71.
However, investors should always evaluate their own financial goals and risk tolerance before making an investment decision.
Why NHPC Is in Focus
NHPC is one of India’s largest hydropower companies and plays an important role in the country’s renewable energy sector.
Apart from hydropower projects, the company is also expanding into solar energy and other clean energy initiatives.
As India continues to focus on renewable power generation, NHPC remains a closely watched public sector company.
Key Things Investors Should Know
OFS opens for retail investors and employees on June 3.
Floor price is ₹71 per share.
Government is selling a total 6% stake.
Institutional portion was subscribed 3.47 times.
The transaction could raise around ₹4,200 crore.
Employees have a reserved quota in the offer.
Bottom Line
The NHPC OFS has attracted strong investor interest, forcing the government to double the size of the share sale.
With shares being offered at a discount to the market price and institutional investors showing strong demand, the issue has generated significant attention.
Investors looking at PSU and renewable energy stocks may find the offer worth examining, but they should assess the company’s fundamentals and their own investment objectives before applying.
