NHPC Offers for Sale Subscribed Nearly 3.5 Times on First Day, Government to Exercise Green Shoe Option

Government Exercises Full Greenshoe Option in NHPC Stake Sale

The Indian government has decided to exercise the full greenshoe option in the Offer for Sale (OFS) of NHPC Limited, following strong demand from investors on the first day of bidding. The OFS was oversubscribed 3.47 times on the opening day, prompting the government to increase the stake sale to the full 6 per cent on offer.

The government had announced plans to sell up to a 6 per cent stake in the state-run hydropower company through the OFS at a floor price of Rs 71 per share. The offer comprises a base issue of 3 per cent and an additional 3 per cent greenshoe option. This sale represents an 8 per cent discount to NHPC's closing price of Rs 77.19 on the BSE on Monday, when the stock ended the session 2.07 per cent lower than its previous close.

The sale of more than 60.27 crore shares, representing a 6 per cent stake in the company, is expected to fetch around Rs 4,200 crore for the government. The NHPC OFS is the third stake sale by the government in a public sector company in the current financial year. Last week, the government raised Rs 5,542 crore through a 2 per cent stake sale in Coal India, while an 8.08 per cent stake sale in Central Bank of India in May fetched Rs 2,266 crore.

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With these transactions, the government's disinvestment proceeds in FY27 have reached Rs 7,808 crore. The Union Budget for FY27 has set a target of raising Rs 80,000 crore through disinvestment and asset monetisation, significantly higher than the revised estimate of Rs 33,837 crore for FY26. Retail investors and employees can place bids for the OFS on Wednesday.