NHPC OFS Opens Today: Why Shares Fell 5%, 6% Stake Sale and Everything You Need to Know

NHPC shares were struggling with selling pressure on Tuesday after the Government of India launched an Offer for Sale to divest up to a 6% stake in the state-run hydropower giant.

NHPC shares fell more than 5% during intraday trade. At around 11 am, the PSU stock was trading at Rs. 73.23 on the BSE, down 5.14%, after hitting an intraday low of Rs. 73.17. In comparison, the benchmark BSE Sensex was down just 0.25% at 74,082.

NHPC OFS Opens for Investors

The Government of India has launched the NHPC OFS as part of its ongoing disinvestment programme. The offer consists of a base sale of 3% equity and an additional 3% Green Shoe Option, which can be exercised in the event of strong investor demand.

The base offer includes 30.13 crore equity shares, representing 3% of NHPC's paid-up equity capital. An equal number of shares have been earmarked under the Green Shoe Option. If fully subscribed, the government will sell a total of 60.27 crore shares, equivalent to 6% of NHPC's paid-up equity capital as of March 31, 2026.

The OFS was announced by DIPAM Secretary Arunish Chawla and it is another major stake sale by the Centre in the current financial year.

NHPC OFS Price Set at 8% Discount

The government has fixed the floor price for the NHPC OFS at Rs. 71 per share, representing an approximately 8% discount to Monday's closing price of Rs. 77.19 on the BSE.

The discount has caused the selling pressure in the stock today, as investors often adjust market prices closer to the OFS price during such stake sale transactions. NHPC shares had already declined over 2% in the previous session ahead of the OFS launch.

Who Can Apply for NHPC OFS?

The OFS opened for non-retail investors on June 2, while retail investors, eligible employees and non-retail investors carrying forward unallotted bids can participate on June 3.

The government has reserved up to 45.20 lakh equity shares for eligible employees. Employees can apply for shares worth up to Rs. 5 lakh, while retail investors can bid for shares worth up to Rs. 2 lakh under the retail category.

Applications can be submitted through demat and trading accounts using the standard OFS bidding mechanism available on stock exchanges.
Government May Raise Around Rs. 4,200 Crore.

If the government exercises the full Green Shoe Option and sells the entire 6% stake at the floor price of Rs. 71 per share, the transaction is expected to generate approximately Rs. 4,200 crore for the exchequer.

The stake sale will reduce the government's holding in NHPC from 67.4%, as reported in the March 2026 shareholding pattern, while still retaining majority control over the company.

Part of Government's FY27 Disinvestment Drive

The NHPC OFS is the third public sector divestment transaction undertaken by the government in FY27. Last week, the Centre sold a 2% stake in Coal India through an OFS, raising Rs. 5,542 crore. Earlier in May, it divested an 8.08% stake in Central Bank of India, generating Rs. 2,266 crore.

With these transactions, total disinvestment proceeds in FY27 have reached approximately Rs. 7,808 crore.

About NHPC

NHPC is a Navratna public sector undertaking under the Ministry of Power and is India's largest hydropower company. The company operates more than 7,000 MW of hydroelectric and renewable energy capacity across several states, including Jammu & Kashmir, Himachal Pradesh, Uttarakhand and Arunachal Pradesh.