Shares of NHPC experienced a nearly 5 percent decline in early trading on Tuesday following the government’s announcement to divest up to 6 percent of its stake in the state-run hydropower company through an offer for sale (OFS) at a discounted floor price of ₹71 per share. This substantial discount to the current market price prompted selling pressure.
On the National Stock Exchange (NSE), NHPC shares dropped by as much as 4.6 percent, falling to ₹73.62 from the previous close of ₹77.20. By around 9:48 AM, the stock was trading at ₹73.83.
The government revealed on Monday that it plans to sell a total of 6 percent equity in NHPC via the OFS mechanism. This includes a base offer of 3 percent along with an additional 3 percent green shoe option should the offering be oversubscribed. The fixed floor price of ₹71 per share represents an approximately 8 percent discount from Monday’s closing price of ₹77.19 on the Bombay Stock Exchange (BSE).
The OFS is scheduled to open for non-retail investors on June 2 and for retail investors on June 3. The sale, which encompasses over 60.27 crore shares, could raise about ₹4,200 crore for the government.
Virat Jagad, a Senior Technical Research Analyst at Bonanza, has advised traders to proceed with caution, recommending that they avoid taking aggressive long positions at current levels and wait for indications of market stabilization. He noted that any price pullback towards resistance levels could lead to new selling pressure in the short term.
