Govt to sell 3.5% in power producer NHPC at Rs 66 a share beginning Thursday

The government said on Wednesday that it will sell a 3.5 per cent stake in power producer National Hydroelectric Power Corporation (NHPC) at a floor price of Rs 66 per share, raising Rs 2,300 crore for the exchequer.

Tuhin Kanta Pandey, Secretary of Department of Investment and Public Asset Management, said on X (formerly known as Twitter), "Offer for sale in NHPC opens tomorrow for non-retail investors. Retail investors can bid on Friday. The government will divest 3.5 per cent equity, including Greenshoe option of 1 per cent."

Offer for sale in NHPC opens tomorrow for non-retail investors. Retail investors can bid on Friday. The government will divest 3.5% equity including Green Shoe option of 1%. pic.twitter.com/MnsPKBO7eN

— Secretary, DIPAM (@SecyDIPAM) January 17, 2024

As part of the OFS, the government will sell around 25 crore equity shares in NHPC, with a greenshoe option to sell another 10 crore.

The floor price of Rs 66 per share represents a 9.66 per cent reduction to Wednesday's closing price of NHPC shares.

At the floor price, the OFS would return approximately Rs 2,300 crore to the government.

NHPC shares closed at Rs 73.06 each, up 0.90 per cent on the BSE.