NHPC Share Price Plunges 6% Amid Follow-On Public Offer (FPO)

Government to Sell Up to 6% Stake in NHPC

State-owned company NHPC declined almost 6% on Tuesday, June 2, after the Indian Government announced plans to sell up to 6% stake in the company through an offer for sale (OFS) route. The move is part of the government's ongoing disinvestment programme, offering investors an opportunity to acquire shares in one of India's largest hydropower companies at a floor price of ₹71 per share.

NHPC stock lost as much as 5.6% to its day's low of ₹72.86, following the announcement. The company has been under pressure recently, down 12% in 1 month, 5% in 6 months, and 16% in 1 year. However, it has given multibagger returns in the long term, rising 183% in 5 years.

According to the notice issued by the Ministry of Power on June 1, 2026, the President of India, acting through the Ministry of Power, proposes to sell 30,13,51,044 equity shares, representing 3% of NHPC's paid-up equity capital, through the stock exchange mechanism. The government has also retained an oversubscription option to sell an additional 30,13,51,044 shares, equivalent to another 3% stake, taking the total potential divestment to 6% of the company's equity capital.

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The OFS will be conducted over two trading sessions. Non-retail investors will be permitted to bid on June 2, while retail investors, eligible employees, and non-retail investors opting to carry forward unallotted bids will be allowed to participate on June 3.

The floor price for the OFS has been fixed at ₹71 per equity share. Investors can place bids above the floor price, while retail investors will also have the option to bid at the cut-off price determined through the bidding process.

ICICI Securities, Goldman Sachs (India) Securities Private Limited, and SBICAP Securities Limited have been appointed as brokers to the seller for conducting the transaction.

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The proposed stake sale forms part of the government's broader asset monetisation and disinvestment strategy. Given NHPC's position as a leading hydroelectric power producer and the attractive floor price of ₹71 per share, market participants will closely monitor investor response during the two-day bidding process. If fully subscribed along with the oversubscription option, the OFS would result in the government divesting up to 6% of NHPC's equity capital while continuing to remain the company's promoter.