Shares of NHPC are in focus today as the government initiated a two-day Offer for Sale (OFS) to offload a portion of its stake in the hydropower generation company. The OFS, which commenced on Tuesday, aims to divest a 3% stake, with an option to sell an additional 3% if oversubscribed.
OFS Details and Discounted Price
The floor price for the NHPC OFS has been fixed at Rs 71 per share. This represents a significant 7.85% discount compared to Monday's closing price of Rs 77.05 per share on the NSE, making the offer attractive to potential investors.
On the first day of the offer, Tuesday, only non-retail investors and eligible employees were permitted to place their bids. Retail investors will have their opportunity to participate in the NHPC stock sale on Wednesday, June 3, 2026. The government held a 67.40% stake in NHPC as of March 31, 2026, and has recently executed similar stake sales in other public sector undertakings like Coal India and Central Bank of India.
Employee Participation and Bid Revisions
Up to 45,20,265 equity shares are reserved for eligible employees of NHPC. Employees can apply for shares worth up to Rs 5,00,000, though initial allocations will prioritize bids up to Rs 200,000. Non-retail investors who placed bids on Tuesday can opt to carry forward any un-allotted bids to Wednesday, allowing them to participate in the unsubscribed portion of the retail category. Both employees and non-retail investors who carry forward their bids will also have the option to revise their bids on Wednesday.
Strong Financial Performance in FY26
This NHPC OFS follows a strong financial year 2026 for the company. NHPC reported a 33.2% year-on-year increase in revenue and a 35% year-on-year rise in EBITDA. This growth was primarily driven by the commissioning of the Parbati-II project and the partial commissioning of the Subansiri Lower and Karnisar Solar projects. Analysts noted a 16% year-on-year increase in generation for FY26, largely attributed to these new capacity additions.
Looking ahead, NHPC management highlighted plans to bring five new hydro projects under construction in FY27, aiming to scale regulated equity from the current Rs 18,300 crore to Rs 30,600 crore by FY27. However, the company also noted under-recoveries from some projects due to provisional tariff bookings, with final tariff orders expected in Q1FY27. The restoration of Teesta-V is also underway, with a restart anticipated by June 2026.