NHPC slides as OFS begins; Govt proposes to sell 3.5% stake

The OFS includes a base size of 2.5%, with an additional 1% offered through the green shoe option. The offering is scheduled to open for non-retail investors on January 18, followed by the retail investor segment on January 19.

Through the OFS, the Government of India proposes to sell 251,125,870 shares, representing a 2.5% stake, with an option to sell an additional 1% stake or 100,450,348 equity shares in case of oversubscription.

The floor price of the offer has been set at Rs 66, a 9.66% discount to the stock's closing price of Rs 73.06 on Wednesday, 17 January 2024.

The Government of India held 70.95% stake in NHPC as of 30 December 2023.

A minimum of 25% of the offer has been reserved for mutual funds and insurance companies, while 10% for retail investors.

The OFS opened on 18 January 2024, which is the T-day, where only non-retail investors can bid for the shares. On 19 January 2024, which is the T+1 day, the OFS will be accessible for retail investors and those non-retail investors, who choose to carry forward their un-allotted bids from T day.

On Day 1 (T-day), as of 11:40 IST, the OFS received subscription for 7,93,00,000 shares. It was subscribed 36.21% on the base non-retail offer size of 226,013,283 shares.

NHPC is the largest organization for hydropower development in India. It has also diversified in the field of solar & wind power. As of 31 March 2023, the Government of India held 70.95% stake in the company.

The company?s consolidated net profit rose marginally to Rs 1,545.85 crore in Q2 FY24 from Rs 1,535.60 crore in Q2 FY23. Net sales declined 12.9% year on year to Rs 2,931.26 crore during the quarter.

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