NHPC Shares Decline 4% Following Government's Offer for Sale at Discounted Rate

Government Launches Offer for Sale of Up to 6% Stake in NHPC Ltd

Shares of state-run hydropower producer NHPC Ltd plummeted by over 4 percent in early trade on Tuesday following the government's announcement of an offer for sale (OFS) to divest up to a 6 percent stake in the company at a discount to the prevailing market price.

NHPC shares were trading at Rs 74.07 in early morning trade, down 4.05 percent for the day. The stock has now declined more than 6 percent over the last two sessions and is down about 15 percent over the past year, underperforming the Nifty 50's 5.9 percent decline during the same period. Despite the decline, NHPC remains India's premier hydropower company.

The Department of Investment and Public Asset Management (DIPAM) announced the OFS on Monday, offering a base issue size of 3 percent of NHPC's equity with a green shoe option to sell an additional 3 percent stake in case of strong investor demand. The offer opens for non-retail investors on Tuesday, June 2, while retail investors can bid on Wednesday, June 3.

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The floor price for the OFS has been fixed at Rs 71 per share, representing a discount of around 8 percent to NHPC's previous closing price. According to sources cited by CNBC-TV18, the base issue size is estimated at Rs 2,139.59 crore, with a similar amount available under the green shoe option. If fully subscribed, the government could raise nearly Rs 4,300 crore through the stake sale.

The government held a 67.4 percent stake in NHPC at the end of the January-March quarter, according to exchange data. The OFS follows similar stake sales in Coal India and Central Bank of India undertaken by the government over the past two weeks as part of its disinvestment programme.

NHPC's latest financial performance saw a strong set of Q4 FY26 earnings, with a 68.5 percent year-on-year increase in net profit to Rs 1,549 crore for the fiscal fourth quarter, while revenue rose 20 percent to Rs 2,816 crore. The company commands a market capitalisation of about Rs 74,500 crore.

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