Govt Sets NHPC OFS Floor Price at Rs 71, Plans Up to 6% Stake Sale
- 2nd June 2026
- 01:00 PM
- 3 min read
Summary
The Indian government has announced an offer for sale of up to 6% in NHPC Ltd, India's largest hydropower company, with the floor price fixed at Rs 71 per share. The OFS opened for non-retail investors on June 2 and opens for retail investors on June 3. At the floor price, the sale of over 60.27 crore shares could raise approximately Rs 4,200 crore for the government.Mumbai | June 2, 2026
The Department of Investment and Public Asset Management has launched an OFS in NHPC Ltd, comprising a base offer of 3% of its equity and a green-shoe option for an additional 3% if the base offer is oversubscribed. The floor price of Rs 71 per share represents a discount of approximately 8% to NHPC’s previous closing price.
An OFS is a mechanism that allows promoters or large shareholders of listed companies to sell shares through stock exchanges in a transparent manner.
What Is the NHPC OFS Structure?
The base offer covers 3% of NHPC’s equity, with the green-shoe option allowing the government to offload an additional 3% stake if demand warrants. Retail investors can bid up to Rs 2 lakh and typically receive a discount to the cut-off price, with 10% of the issue reserved for the retail category. The Centre currently holds a 67.4% stake in NHPC.
DIPAM Secretary Arunish Chawla confirmed the floor price in an exchange filing, stating: “Government of India announces OFS in NHPC Ltd with a base offer of 3 per cent of its equity and an additional 3 per cent Green Shoe Option in case of oversubscription. Floor price fixed at Rs 71 per share.”
Where Does This Fit in the Government’s Divestment Plan?
The NHPC stake sale is the third OFS by the government in the current financial year. In May, the Centre sold an 8.08% stake in Central Bank of India for Rs 2,266 crore. Last week, it divested a 2% stake in Coal India through an OFS, raising Rs 5,542 crore. Total divestment proceeds in the current financial year have reached Rs 7,808 crore so far.
The Union Budget set a divestment and asset monetisation target of Rs 800 billion, and these transactions form part of the government’s broader programme to raise resources while expanding public ownership in state-run enterprises.
What Is NHPC?
NHPC is a Navratna PSU under the Ministry of Power. It operates over 7,000 MW of hydro and renewable capacity across Jammu and Kashmir, Himachal Pradesh, Uttarakhand, and Arunachal Pradesh, among other states. The company is also expanding into solar and pumped storage as part of India’s clean energy agenda.
Outlook
The NHPC OFS is open to retail investors on June 3. The green-shoe option provides the government flexibility to sell a full 6% if investor demand for the base offer is strong.
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