The Indian government has initiated an offer for sale (OFS) of up to 6% stake in NHPC Limited, the country's largest hydropower company, at a floor price of Rs 71 per share. The sale opens today, June 2, 2026, and is expected to raise over Rs 4,700 crore for the exchequer.
Details of the Offer for Sale
The government currently holds a 73.74% stake in NHPC. Through this OFS, it will sell up to 60.3 crore shares, representing 6% of the total paid-up equity. The floor price of Rs 71 per share is at a discount of about 5% to the current market price. The sale is part of the government's broader disinvestment strategy to meet its fiscal targets.
Who Can Participate?
The offer is open to both retail and institutional investors. Retail investors, who apply for shares worth up to Rs 2 lakh, will be given a 5% discount on the floor price. Non-retail investors, including mutual funds and foreign portfolio investors, can bid at the floor price or above.
Timeline of the Sale
- June 2, 2026: Offer opens for non-retail investors.
- June 3, 2026: Offer opens for retail investors.
- June 6, 2026: Final allotment and settlement.
Why is the Government Selling?
The disinvestment is aimed at bridging the fiscal deficit and funding infrastructure projects. The government has set a target of raising Rs 1.75 lakh crore from stake sales in the current fiscal year. NHPC, which has a strong project pipeline and stable cash flows, is a prime candidate for partial divestment.
Impact on NHPC and Investors
The sale is expected to increase liquidity in NHPC shares and broaden the shareholder base. For the company, the move does not affect its operations or management. Investors see this as an opportunity to buy into a leading hydropower player at a discounted price. However, some analysts caution that the large supply of shares could pressure the stock price in the short term.
NHPC's Financial Performance
NHPC reported a net profit of Rs 3,200 crore for the fiscal year 2025-26, up 12% from the previous year. The company has a total installed capacity of over 7,000 MW and plans to add another 5,000 MW in the next five years. Its strong balance sheet and consistent dividend payments make it a favorite among long-term investors.
How to Apply
Interested investors can apply through their stockbrokers or online trading platforms. The OFS will be conducted on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Retail investors must ensure their demat accounts are active and have sufficient funds.
The government's stake sale in NHPC is a significant step in its disinvestment roadmap. With a discounted price and strong fundamentals, the offer is likely to attract robust demand from both retail and institutional investors. However, market participants will closely watch the response to gauge the appetite for such offerings.
