NHPC Shares Drop Over 5% After Government Launches 6% OFS, Stake Sale At ₹71 Per Share Aims To Raise Around ₹4,200 Crore

Mumbai: Shares of NHPC declined sharply on Tuesday after the government opened its Offer for Sale (OFS) for investors.

The stock was trading at Rs 72.84 on the BSE, down 5.64 percent during the day. Investors reacted to the government's decision to sell part of its holding in the hydropower company.

The OFS opened for non-retail investors on Tuesday. Retail investors will be able to participate on Wednesday.

Government Offers Shares at Discount

The government has fixed the floor price for the OFS at Rs 71 per share.

This price is about 8 percent lower than NHPC’s closing price of Rs 77.19 on Monday. The stock had already fallen 2.07 percent in the previous trading session ahead of the announcement.

A lower floor price is often used to attract investor interest and ensure good participation in the share sale.

Rs 4,200 Crore Expected From Stake Sale

Under the OFS, the government plans to sell more than 60.27 crore shares, representing a 6 percent stake in NHPC.

At the floor price of Rs 71 per share, the sale is expected to generate nearly Rs 4,200 crore for the government.

The proceeds will contribute to the Centre’s disinvestment and asset monetisation plans for the current financial year.

Third PSU Stake Sale in FY27

The NHPC OFS is the third stake sale by the government in a public sector undertaking (PSU) during FY27.

Last week, the government sold a 2 percent stake in Coal India through an OFS and raised Rs 5,542 crore.

Earlier in May, it sold an 8.08 percent stake in Central Bank of India, collecting Rs 2,266 crore.

With these transactions, total disinvestment proceeds in FY27 have reached Rs 7,808 crore so far.

Higher Disinvestment Target for FY27

The Union Budget for FY27 has set a target of Rs 80,000 crore from disinvestment and asset monetisation.

This is significantly higher than the revised estimate of Rs 33,837 crore achieved in FY26.

The NHPC stake sale is another step towards helping the government meet its ambitious revenue target.