Govt eyes ₹ 4,600 cr from NHPC OFS as it logs 3.47 times on Day 1; possibility of practicing full greenshoe

New Delhi: The government’s offer for sale (OFS) in NHPC Ltd received a strong response from investors on the first day, with the issue subscribed 3.47 times, prompting the Center to exercise the entire green shoe option.

The government announced the OFS on Monday with a base offer of 3% of its equity NHPC and an additional 3% greenshoe option in case of over-subscription. The minimum bid price was set at ₹71 per share, a discount of about 8% to the stock’s previous closing price ₹77.19.

At the minimum price, the share sale is expected to reach approx ₹4,650 million crowns.

NHPC, a navratna public sector undertaking, is India’s leading hydropower producer with a growing presence in solar and wind power projects.

Joining social media platform X, the Secretary of the Department of Investment and Public Asset Management (Dipam). Arunish Chawla said the OFS attracted investor participation, with bids exceeding the offered shares by 3.47 times on the first day. Allotment of shares will be done on priority basis, he said.

Following strong demand, the government has decided to exercise the entire greenshoe option and increase the stake sale size to 6% of NHPC’s equity, he said.

The OFS opened to non-retail investors on June 2, while retail investors and eligible employees can bid on June 3.

The government currently holds a 67.4% stake in NHPC, equivalent to 6.77 billion shares, according to information available on Dipam’s website. Based on the previous day’s closing price, the government holding is valued at approx ₹52,259 crore while the total market capitalization of NHPC is at par ₹77,538 million crowns.

Disinvestment program

After the OFS is completed, the government’s stake is expected to be reduced to around 6.17 billion shares. Despite the stake sale, the government will remain the majority shareholder in NHPC with a 61.4% stake.

The strong response is expected to support the Centre’s disinvestment program for FY27. The government has set a target to increase ₹80,000 crore through disinvestment and asset monetization in FY27. Government is diluting part of its stake in NHPC through a company OFS route.

Earlier, the government conducted a stake sale in Coal India Ltd, with the offer for sale (OFS) attracting more than eight times the shares on offer on the first day of the offering.

The NHPC OFS came days after the government initiated OFS in Coal India Ltd and Central Bank of India. The government is using the OFS route more actively this year to raise revenue while improving the public stake in state-owned companies.

The government was collecting ₹16,885.56 crore from disinvestment in FY26, compared to Rs ₹10,163.02 crore in the previous fiscal, according to Dipam data. In addition to divestment income, ₹28,420.49 million crowns were obtained by monetizing assets in fiscal year 26. Prior to FY26, there were no such asset monetization revenues.