NHPC Shares Fall Over 4% as Government Launches OFS to Sell Up to 6% Stake

Shares of NHPC Ltd declined more than 4% in early trade on June 2 after the Government of India launched an Offer for Sale (OFS) to divest up to a 6% stake in the state-run hydropower company at a discounted price.

The stock fell as much as 4.58% to ₹73.66 on the NSE and was trading around ₹74.07 in morning deals, down 4.05% for the day. NHPC shares have now slipped more than 6% over the last two trading sessions and are down about 15% over the past year, underperforming the Nifty 50, which has declined 5.9% during the same period.

Government Announces 6% Stake Sale Through OFS

The Department of Investment and Public Asset Management (DIPAM) announced the OFS on June 1. The government is offering a base issue size of 3% of NHPC’s equity and has retained a green shoe option to sell an additional 3% stake in case of strong investor demand.

DIPAM Secretary Arunish Chawla said the floor price for the OFS has been fixed at ₹71 per share. The offer opened for non-retail investors on June 2, while retail investors can participate on June 3.

The floor price represents an approximately 8% discount to NHPC’s previous closing price of ₹77.19 on the BSE. On the NSE, the stock had closed at ₹77.05, down 2.31% in the previous session.

Government May Raise Nearly ₹4,300 Crore

The sale involves more than 60.27 crore shares, representing a 6% stake in the company. Based on the floor price of ₹71 per share, the base issue size is estimated at around ₹2,139.59 crore. A similar amount could be raised through the green shoe option, taking the total proceeds to nearly ₹4,300 crore if the issue is fully subscribed.

The government held a 67.4% stake in NHPC at the end of the January-March quarter. The OFS forms part of the Centre’s ongoing disinvestment programme and follows recent stake sales in Coal India and Central Bank of India. Last week, the government sold a 2% stake in Coal India, raising ₹5,542 crore, while an 8.08% stake sale in Central Bank of India in May fetched ₹2,266 crore. Combined disinvestment proceeds in FY27 have reached ₹7,808 crore so far.

The Union Budget for FY27 has targeted ₹80,000 crore through disinvestment and asset monetisation, significantly higher than the revised estimate of ₹33,837 crore for FY26.

Strong Q4 Performance Supports Outlook

The OFS announcement comes shortly after NHPC reported strong earnings for the March quarter. Consolidated net profit surged 68.5% year-on-year to ₹1,549.42 crore from ₹919.63 crore a year earlier. Total income increased to ₹3,120.52 crore from ₹2,557.71 crore.

For FY26, net profit rose to ₹4,220.46 crore from ₹3,411.73 crore, while total income climbed to ₹12,686.09 crore from ₹11,614.61 crore. The board also recommended a final dividend of ₹0.21 per equity share.

NHPC added 1,850 MW of capacity during FY26 through the commissioning of the 750 MW Subansiri Lower Project, the 800 MW Parbati-II Project and the 300 MW Karnisar Solar Project, marking the highest annual capacity addition in the company’s history. The company generated 23,307 million units of electricity during the year and currently has a total installed capacity of 9,333 MW through its subsidiaries and joint ventures, while 17 projects with a combined capacity of 9,204 MW are under construction.