The state-run hydropower producer’s stock rose 1.2% yesterday, along with gains in other PSU stocks, and closed at Rs 73.25. On January 17, the company announced that the Offer for Sale (OFS) for NHPC will open on January 18 for non-retail investors. Retail investors will be able to bid on Friday. Under the OFS, the government will sell over 25 crore equity shares in NHPC (with a green shoe option to sell 10 crore more) at a floor price of Rs 66 a share. The reports estimate that the OFS will involve up to a 3.5% stake in the PSU.
The OFS will open for non-retail investors on January 18 and for retail investors on January 19. The Secretary of the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, stated in a post on “X” that “Offer for sale in NHPC opens tomorrow for non-retail investors. Retail investors can bid on Friday. The government will divest 3.5% equity including green shoe option of one per cent.” Approximately 10% of the offer shares will be reserved for allocation. NHPC announced on Wednesday that the government would sell a 3.5% stake, or shares up to Rs 35.16 crore through OFS.
As of December 31, the government owned approximately 71% of the PSU major. Through disinvestment, the government has raised slightly over Rs 10,000 crore so far this fiscal year. The government has sold stakes in Coal India, Hindustan Aeronautics, Housing and Urban Development Corporation, IRCON International, Rail Vikas Nigam, and SJVN through OFS, raising a total of Rs 1,349 crore so far.
The price action in NTPC was accompanied by huge volumes as nearly 4.47 crore shares changed hands around 10:30 am. Strong demand, capacity additions, and the government’s increased focus on renewable energy have charged up power stocks. In the last year, NHPC shares have rallied more than 60% and outperformed the Nifty by a wide margin.