Government's NHPC Share Sale Attracts High Demand
The government's Offer For Sale (OFS) of shares in state-owned hydropower company NHPC Ltd. has received a robust response from non-retail investors. On the first day of the two-day offering, bids surpassed the available shares by 3.47 times (347.37 percent), according to data from BSE. This strong initial interest signals confidence in the public sector undertaking.
Retail Bidding Window Now Open
Following the successful first day, the OFS is now open for retail investors. Individuals who bid for shares totaling not more than Rs 2,00,000 are classified as retail investors and are eligible to participate today, June 3, 2026. NHPC employees and non-retail investors who placed bids on day one also have the option to revise their bids on the second day.
OFS Details and Discounted Price
The government, which held a 67.40 percent stake in NHPC as of March 31, 2026, aims to divest up to 6 percent of its holding through this OFS. A base size of 3 percent is being offered, with an additional 3 percent available in case of oversubscription. The floor price for the OFS was set at Rs 71 per share, representing a significant 7.85 percent discount compared to Monday's closing price of Rs 77.05 per share, contributing to the strong investor interest.
Analyst Perspectives on NHPC
Several brokerage firms have provided their views on NHPC. Kotak Institutional Equities, in a note dated June 1, maintained a 'Sell' rating with a target price of Rs 72, which is just above the OFS floor price. ICICI Securities, on May 19, reiterated a 'Reduce' rating and a Rs 72 target, citing potential subdued earnings from new power plants until final tariff orders are issued. Conversely, JM Financial maintained an 'Add' rating with an increased target price of Rs 86 (from Rs 84), highlighting NHPC's 100% green energy portfolio and expected rise in regulated equity to Rs 32,100 crore by FY28E, driven by new project commissions like Parbati-II and Subansiri after a seven-year gap.