The Indian government has announced plans to sell a 6% stake in NHPC, with the offer for sale (OFS) commencing on Tuesday. The shares will be priced at a floor price of ₹71 each.
Details of the Offer:
- The OFS includes a base offer of 3% of NHPC's equity and an additional 3% under the Green Shoe Option in case of oversubscription.
- The fixed floor price represents an 8% discount compared to NHPC's closing price of ₹77.19 on the BSE on the previous trading day.
The offer opens for non-retail investors on June 2, followed by retail investors on June 3. The sale of over 60.27 crore shares at the floor price is expected to generate approximately ₹4,200 crore for the government.
Context of Recent Disinvestment:
This marks the third OFS of a public sector company in the current fiscal year. Recently, the government conducted an OFS for Coal India, selling a 2% stake and raising ₹5,542 crore, and an 8.08% stake in the Central Bank of India, which garnered ₹2,266 crore. The total disinvestment proceeds for FY27 have reached ₹7,808 crore.
Future Financial Goals:
The FY27 Budget has set a target of raising ₹80,000 crore through disinvestment and asset monetisation, significantly higher than the ₹33,837 crore estimated for FY26.
