The Centre has launched an Offer for Sale (OFS) in state-run hydropower major NHPC, aiming to divest up to a 6% stake in the company as part of its disinvestment and resource mobilisation programme. The sale opened for non-retail investors on June 2, while retail investors will be able to bid on June 3.
Under the OFS, the government is initially offering a 3% stake, equivalent to around 30.12 crore shares. It also retains a greenshoe option to sell an additional 3% stake, taking the total offer size to 6% if investor demand remains strong. The floor price for the issue has been fixed at ₹71 per share, representing a discount to the prevailing market price.
At the floor price, the government could raise more than ₹4,200 crore if the entire 6% stake is sold. The proceeds will contribute to the Centre’s broader disinvestment targets for the current financial year.
The OFS structure provides an opportunity for institutional and retail investors to acquire shares directly from the government. Retail investors are expected to receive a discount on the floor price, in line with the government’s practice in previous OFS transactions.
The government currently holds a majority stake in the company. Following the OFS, its shareholding will decline, though it will continue to retain management control. The stake sale is aimed at improving public shareholding while unlocking value from government-owned enterprises.
NHPC is India’s largest hydropower development company and operates several hydroelectric projects across the country. The company has also expanded into solar and other renewable energy segments as part of its diversification strategy. With a substantial portfolio of power generation assets, NHPC remains a key player in India’s clean energy transition.
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