Government Sets Floor Price for NHPC Offer for Sale at Rs 71, Aims to Sell up to 6% Stake

Government Announces Offer for Sale in NHPC, Seeks to Raise Up to Rs 6,000 Crore

The government on Monday announced an offer for sale (OFS) of up to 6% in state-run hydropower producer NHPC, according to an exchange filing by the company.

The OFS comprises a base offer of up to 3% of NHPC's equity, with a green-shoe option to sell an additional 3% stake in case of strong investor demand. The floor price for the share sale has been set at Rs 71 per share, representing a discount of about 8% to NHPC's previous closing price.

The issue will open for non-retail investors on June 2, 2026, while retail investors will be able to bid on June 3, 2026. An OFS is a mechanism that enables promoters or large shareholders of listed companies to sell shares through stock exchanges in a transparent manner.

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The stake sale forms part of the government's broader divestment and asset monetisation programme aimed at raising resources while improving public-sector efficiency. The Centre currently holds a 67.4% stake in NHPC.

The NHPC share sale is expected to help advance the government's disinvestment agenda while widening public ownership in the state-owned power producer. In the Union Budget for FY27, the government set a divestment and asset monetisation target of ₹800 billion. As part of this strategy, it sold an 8% stake in Central Bank of India and a 2% stake in Coal India through OFS transactions in May.