Highlights
- Government has launched an Offer for Sale of up to 6% stake in NHPC.
- Base offer comprises 3.00% equity, with an equal oversubscription option.
- NHPC shares declined more than 4% during early trading on June 2.
The Government of India, acting through the Ministry of Power, has announced an Offer for Sale (OFS) of equity shares in NHPC Limited (NSE:NHPC). According to the notice submitted to the stock exchanges, the President of India, acting as the promoter of the company, proposes to divest up to 3.00% of NHPC's paid-up equity capital through the OFS mechanism.
The transaction is being conducted through separate designated windows of the National Stock Exchange (NSE) and BSE in accordance with the Securities and Exchange Board of India (SEBI) guidelines governing offer-for-sale transactions.
Source: Analysis by Kalkine
Base Offer Includes Option to Double Stake Sale
Under the proposed transaction, the government will initially offer 30,13,51,044 equity shares, representing 3.00% of NHPC's paid-up equity capital as of March 31, 2026.
In addition, the seller has retained an oversubscription option to sell another 30,13,51,044 equity shares. If fully exercised, the total number of shares offered would rise to 60,27,02,088 equity shares, equivalent to 6.00% of the company's paid-up equity capital.
The OFS opens for non-retail investors on June 2, 2026, while retail investors, eligible employees, and non-retail investors carrying forward unallotted bids can participate on June 3, 2026.
Employee Reservation Included in Offer Structure
The government has also earmarked up to 45,20,265 equity shares for eligible NHPC employees under the employee offer portion of the transaction.
Eligible employees may place bids worth up to INR 500,000. However, allocation preference will initially be considered for applications up to INR 200,000 in accordance with the OFS guidelines and applicable approvals.
OFS Adds Focus on Government Disinvestment Plans
The proposed transaction represents another disinvestment exercise involving a public sector enterprise. Through the OFS route, the government can reduce its shareholding while enabling participation from institutional, retail, and employee investors through the stock exchange platform.
The offer will be executed through designated brokers appointed by the seller and cleared through NSE Clearing Corporation as specified in the offer notice.
Share Performance
NHPC shares came under pressure following the OFS announcement. As on June 2, 2026, the stock was trading at INR 73.86, down 4.33% from the previous close of INR 77.20. The stock opened at INR 74.73 and touched an intraday high of INR 75.00 before slipping to a low of INR 73.62. The volume-weighted average price (VWAP) stood at INR 74.30 during the trading session.
Source: TradingView
Key Risks
- Increased share supply may create short-term price pressure.
- Oversubscription option could further expand the stake sale size.
- Market volatility may affect investor participation levels.
- Changes in government holding could influence market perception.
Summary
The Government of India has launched an Offer for Sale of up to 6.00% of NHPC's (NSE:NHPC) equity capital, beginning with a 3.00% base offer and an equivalent oversubscription option. The transaction will be conducted through stock exchange mechanisms over two trading days. Following the announcement, NHPC shares traded lower, with investors assessing the impact of the proposed stake sale and additional equity supply in the market.
FAQs
Q: How much stake is the government offering in NHPC?
A: The base offer is 3.00%, with an option to increase the sale to 6.00%.
Q: When can investors participate in the NHPC OFS?
A: Non-retail investors can bid on June 2, while retail investors can participate on June 3.
Q: Are NHPC employees eligible to participate in the OFS?
A: Yes, eligible employees can bid under a reserved employee portion of the offer.