 in NHPC Limited has opened for retail investors after receiving an overwhelming response){kind=link}
The government’s Offer for Sale (OFS) in NHPC Limited has opened for retail investors after receiving an overwhelming response from institutional buyers on the first day of bidding. The strong demand prompted the government to exercise the entire green shoe option, doubling the stake sale from 3 percent to 6 percent.
The OFS is being offered at a floor price of ₹71 per share, providing investors an opportunity to buy NHPC shares at a discount to the prevailing market price of around ₹75. This pricing has emerged as one of the key attractions of the issue.
Initially, the government planned to sell a 3 percent stake, equivalent to 30.13 crore shares. However, after the non-retail portion was oversubscribed 3.47 times, the Centre decided to sell an additional 3 percent stake under the green shoe option, taking the total offer size to 60.27 crore shares.
According to Arunish Chawla, the enthusiastic response from institutional investors reflects confidence in the company’s valuation and long-term prospects. The expanded offer is expected to help the government raise nearly ₹4,200 crore.
Market experts believe the OFS presents an attractive opportunity for investors. Analysts point out that the discounted offer price, combined with NHPC’s strong position in India’s hydropower sector and its growing presence in renewable energy projects, makes the issue appealing.
Sunny Agrawal stated that the valuation appears attractive at the offer price and estimated NHPC’s fair value to be around ₹90 per share. The strong participation from institutional investors has further strengthened confidence in the issue despite ongoing market volatility.
NHPC remains one of India’s leading hydropower producers and is actively expanding into solar and other renewable energy segments as the country accelerates its clean energy transition. Investors looking for exposure to the power and renewable energy sector may find the OFS an attractive entry point.