Government to Sell Up to 6% Stake in NHPC via Offer for Sale
Government of India Announces Offer for Sale in NHPC Ltd
The Department of Investment and Public Asset Management (DIPAM) announced an offer for sale (OFS) in NHPC Ltd, with a base offer of 3% of the company's equity and an additional 3% Green Shoe Option in case of oversubscription. The floor price for the sale has been fixed at ₹71 per share.
The OFS will begin on Tuesday and will be open to non-retail investors on June 2 and retail investors on June 3. The sale of up to 6% stake in NHPC, representing 60.27 crore shares, is expected to fetch approximately ₹4,200 crore to the exchequer.
This move marks the third OFS of a public sector company in the current fiscal year, following the sale of a 2% stake in Coal India last week, which raised ₹5,542 crore, and the sale of 8.08% in the Central Bank of India in May, which raised ₹2,266 crore. These disinvestment proceeds bring the total mop-up in FY27 to ₹7,808 crore.
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The FY27 Budget has estimated a mop-up of ₹80,000 crore through disinvestment and asset monetisation, a significant increase from the Revised Estimates for FY26 of ₹33,837 crore.
| Public Sector Company | Stake Sold | Proceeds (₹ crore) |
|---|---|---|
| Coal India | 2% | 5,542 |
| Central Bank of India | 8.08% | 2,266 |
| NHPC Ltd | up to 6% | 4,200 |
| Total | 7,808 |
Investor Takeaway
The government plans to sell up to 6% stake in NHPC via an offer for sale, which may impact the stock's price.
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