NHPC OFS Begins June 2: Government Offers Up to 6% Stake at ₹71

New Delhi: The Government of India, acting through the Ministry of Power, has announced an Offer for Sale (OFS) of shares in NHPC Limited, one of India's leading hydropower companies. The OFS will open for institutional and non-retail investors on June 2, 2026, while retail investors and eligible employees can participate on June 3, 2026.

The government currently holds a majority stake in NHPC and plans to divest up to 6% of the company's paid-up equity capital through the stock exchange mechanism.

Key Highlights of NHPC OFS 2026

• Company: NHPC Limited

• Seller: President of India through the Ministry of Power

• Floor Price: ₹71 per equity share

• Base Offer Size: 30,13,51,044 equity shares (3% stake)

• Oversubscription Option: Additional 30,13,51,044 shares (3% stake)

• Total Potential Sale: 60,27,02,088 shares (6% stake)

• Offer Dates:

  • June 2, 2026: Non-retail investors

  • June 3, 2026: Retail investors, employees, and carry-forward bids

• Stock Exchanges: BSE and NSE

At the floor price of ₹71 per share, the government could raise approximately ₹2,140 crore from the base offer and up to ₹4,280 crore if the oversubscription option is fully exercised.

Retail Investor Reservation

As per SEBI's OFS framework, 10% of the offered shares have been reserved for retail investors. Individual investors can bid for shares worth up to ₹2 lakh under the retail category.

Retail investors will have the option to:

• Bid at a specific price above the floor price.

• Apply at the "Cut-Off Price," which will be determined based on successful bids received from non-retail investors.

Employee Reservation

The government has also proposed a special employee category under which up to 45.20 lakh shares may be offered to eligible NHPC employees.

Eligible employees can apply for shares worth up to ₹5 lakh, although priority allocation will initially be limited to applications up to ₹2 lakh.

Institutional Investor Allocation

A minimum of 25% of the offer size has been reserved for mutual funds and insurance companies, subject to valid bids at or above the floor price.

Institutional investors can participate without upfront payment, subject to applicable settlement and custodian confirmation requirements under SEBI's OFS guidelines.

Government's Disinvestment Strategy

The NHPC stake sale is part of the Government of India's broader disinvestment and capital-raising strategy. The transaction is expected to enhance public shareholding while helping the government generate non-tax revenue.

NHPC remains a strategically important public sector enterprise in India's power sector, with a significant presence in hydropower generation and growing investments in renewable energy projects.

OFS Brokers

The government has appointed the following brokers to manage the transaction:

• ICICI Securities Limited

• Goldman Sachs (India) Securities Private Limited

• SBICAP Securities Limited

Market Outlook

Investors will closely monitor demand during the bidding process, particularly given NHPC's position in India's renewable energy transition and the attractive pricing offered through the OFS route.

The final allotment price will depend on investor demand and the cut-off price discovered during the offer process.

Market participants expect strong interest from institutional investors due to NHPC's stable business model, government backing, and long-term growth prospects in the clean energy sector.

Disclaimer: Investors should review all official OFS documents, company disclosures, and consult financial advisors before making investment decisions. This article is intended for informational purposes only and does not constitute investment advice.