NHPC shares swing as government OFS priced at ₹71 opens, then retail window begins

Shares of NLC India fell over 3% on Wednesday despite strong demand for the government's Offer for Sale (OFS), which was oversubscribed on the first day. The offer opens for retail investors today.Non-retail investors bid for over 13.03 crore shares worth Rs 4,158 crore, as against a base offer size of 2.49 crore shares reserved for them. Shares of the Navratna PSU company tumbled more than 3% to trade at Rs 316.6 apiece on NSE.NLC India announced on Monday that the government aims to sell 2% of the company’s total paid-up equity capital, or 2.78 crore shares, as part of the base offer. The government also retained an oversubscription option to sell an additional 1% stake or 1.39 crore shares, taking the total potential offer size to 4.17 crore shares or 3% equity. At the floor price of Rs 303 per share, this would be worth around Rs 1,263.51 crore.In an exchange filing released on Tuesday, NLC India said that the government will exercise the oversubscription option to sell up to 1.39 crore shares, in addition to the 2.77 crore shares that were part of the base offer. 10% of the equity shares offered in the OFS, which stands at nearly 41.52 lakh, will be available for retail investors today, subject to receipt of valid offers, the company said.“Additionally, up to 25,000 equity shares may be offered to the eligible employees of the company…The eligible employees may apply for equity shares up to Rs 500,000. However, any bids by eligible employees will be considered for allocation, in the first instance, for an amount up to Rs 200,000 only,” it said.Also read: NLC India OFS over-subscribed 5 times, institutional buyers put in Rs 4,158 cr bidsNLC India, formerly known as Neyveli Lignite Corporation, is among India's leading mining and power generation companies. It operates lignite mines and thermal power stations while also expanding its renewable energy portfolio. The company has emerged as a beneficiary of India's rising power demand and the government's focus on energy security. In recent years, the company has diversified beyond lignite mining into solar and other renewable energy projects as part of its long-term growth strategy.NLC India shareholding patternThe Central government owned a 72.20% stake in NLC India, according to data on the company’s shareholding pattern as on March 31, 2026. A total of 22 mutual funds held around 9.5% stake in NLC India, while Life Insurance Corporation of India (LIC) and SBI Life Insurance each held around 2% stake.NLC India’s OFS comes as the government ramps up its disinvestment efforts. Recently, the government offloaded some of its stake in Coal India, NHPC and other PSU companies.NLC India share priceNLC India shares have fallen around 8% in one week and 3% in one month. The stock is overall up around 25% in 2026 so far. In the longer term, the shares of the PSU have delivered 33% returns over one year, 220% over three years and 396% over five years. The company currently has a market capitalisation of nearly Rs 44,303 crore.NLC India has maintained a track record of returning cash to shareholders through regular dividends. The company has declared 43 dividends since August 2000, and currently has a dividend yield of 1.6%, according to data on Trendlyne.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The government on Monday announced an offer for sale (OFS) in state-run NLC India, seeking to divest up to 3% of its stake through a two-day share sale process. The OFS comprises a base offer of 2% equity, equivalent to 2.78 crore shares, along with a greenshoe option of another 1% stake, or 1.39 crore shares, in case of strong investor demand.The government has fixed the floor price at Rs 303 per share, a discount to the stock's previous closing price. Based on the floor price, the government stands to raise about Rs 842 crore through the base offer. If the greenshoe option is fully exercised, the total issue size could increase to around Rs 1,263 crore.The OFS will open for non-retail investors on June 9, while retail investors and eligible employees can bid on June 10. The share sale will be conducted through a separate window mechanism on the BSE and NSE in line with Sebi's OFS framework.The transaction forms part of the government's broader disinvestment programme and comes amid a strong run in PSU stocks over the past few years.NLC India, formerly known as Neyveli Lignite Corporation, is one of India's leading mining and power generation companies. The company operates lignite mines and thermal power stations while also expanding its renewable energy portfolio.The PSU has emerged as a beneficiary of India's rising power demand and the government's focus on energy security. In recent years, the company has diversified beyond lignite mining into solar and other renewable energy projects as part of its long-term growth strategy.The government highlighted NLC India's strong operational and financial performance while announcing the OFS, describing the company as a long-term investment opportunity supported by consistent profitability and dividend payouts.NLC India has maintained a track record of returning cash to shareholders through regular dividends and has benefited from improving plant performance, higher power generation and growth in mining operations.The OFS comes at a time when institutional and retail participation in government stake sales has remained healthy, particularly in profitable PSUs with stable cash flows and attractive dividend yields.Investors will now watch subscription levels closely to gauge demand for the issue, especially given the government's decision to keep a greenshoe option that allows it to sell an additional 1% stake if the offer is oversubscribed.

The buying on the counter came after the Government of India, acting through the Ministry of Power, exercised the oversubscription option in the ongoing offer for sale (OFS)

The shares of NHPC jumped more than 5% as the offer for sale (OFS) through which the government is selling up to 6% stake in the company opens for retail investors today, after an overwhelming response from non-retail investors on the first day of subscription.The government on Tuesday decided to exercise the green shoe option in the 6% stake sale in NHPC after the OFS was oversubscribed 3.47 times on the first day. "Offer for Sale in NHPC Limited received enthusiastic response from investors and was oversubscribed 3.47 times on the first day. Allocation will be on a price priority basis. The government has decided to exercise the entire green shoe option. Retail investors and employees get to bid on 3rd June 2026," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X. <blockquote class="twitter-tweet"><p lang="en" dir="ltr">Offer for Sale in NHPC Limited received enthusiastic response from investors and was over subscribed 3.47 times on the first day. Allocation will be on price priority basis.<br/><br/>Government has decided to exercise the entire green shoe option. Retail investors and employees get to… <a href="https://t.co/tK9cwzplwT">pic.twitter.com/tK9cwzplwT</a></p>— Secretary, DIPAM (@SecyDIPAM) <a href="https://x.com/SecyDIPAM/status/2061757860736885122?ref_src=twsrc%5Etfw">June 2, 2026</a></blockquote> <script async src="https://platform.x.com/widgets.js" charset="utf-8"></script>Also Read | NHPC OFS subscribed nearly 3.5 times on Day 1, Govt to exercise green shoe optionAll about NHPC's OFSNHPC announced on Monday that the government aims to sell 3% of the company’s total paid-up equity capital as part of the base offer, along with an oversubscription option to sell an additional 30 crore shares, taking the total potential offer size to 60.27 crore shares or 6% equity. At the floor price of Rs 71 per share, this would be worth more than Rs 4,279 crore.The shares of NHPC had crashed over 6% on Tuesday as the OFS floor price of Rs 71 per share implied a discount of nearly 8% to Monday’s closing price, weighing on investor sentiment. However, the strong interest from institutional investors may have boosted confidence.The government owned more than 67% stake in the PSU company as of March 31, 2026. The share sale by its promoter is being conducted through a separate window mechanism on BSE and the National Stock Exchange in accordance with the Securities and Exchange Board of India’s OFS guidelines.NHPC’s OFS comes days after the government divested some of its stake in state-run miner Coal India through an offer for sale at a floor price of Rs 412 per share. The government owned more than 63% stake in the PSU company as on March 31, 2026.Also Read | NHPC shares tumble 5% as govt’s OFS worth up to Rs 4,300 crore opens at 8% discount. Check detailsNHPC share priceNHPC shares have fallen around 7% in one week and 9% in one month. The stock is down more than 5% in 2026 so far. In the longer term, the shares of the PSU have fallen 12% in one year, but gained more than 74% in three years and 190% in five years.The company currently has a market capitalisation of more than Rs 75,709 crore. The stock’s P/E ratio stands at 17.Technical view on NHPCVirat Jagad, Senior Technical Research Analyst at Bonanza, said the NHPC’s recent sharp decline on exceptionally high volumes suggests aggressive selling activity and a breakdown of short-term support near Rs 78. He placed the immediate support near Rs 72–73, while resistance is seen around Rs 78–80.“A sustained move above Rs 80 would be required to improve the technical outlook and open the possibility of a recovery towards Rs 84–86,” he added.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Shares of NHPC fell nearly 5% to Rs 73.42 apiece on Tuesday after the government launched an offer for sale (OFS) to divest up to a 6% stake in the PSU. The OFS, which opened for non-retail investors on Tuesday, was priced at Rs 71 apiece, a discount of nearly 8% to the stock's previous closing price, weighing on investor sentiment.NHPC announced on Monday that the government aims to sell 3% of the company’s total paid-up equity capital as part of the base offer. The government also retains an oversubscription option to sell an additional 30 crore shares, taking the total potential offer size to 60.27 crore shares or 6% equity. At the floor price of Rs 71 per share, this would be worth more than Rs 4,279 crore.The offer for sale opened for non-retail investors on June 2, while retail investors, eligible employees and non-retail investors carrying forward unallotted bids can participate on June 3.Also read: Vedanta shares fall after media reports of ED searches at Mumbai, Delhi officeThe government owned more than 67% stake in the PSU company as of March 31, 2026. NHPC, in its exchange filing, further said that the share sale by its promoter will be conducted through a separate window mechanism on BSE and the National Stock Exchange in accordance with the Securities and Exchange Board of India’s OFS guidelines.NHPC’s OFS comes days after the government divested some of its stake in state-run miner Coal India through an offer for sale at a floor price of Rs 412 per share. The government owned more than 63% stake in the PSU company as on March 31, 2026.NHPC share priceNHPC shares have fallen more than 6% in one week and 12% in one month. The stock is down around 8% in 2026 so far and 16% in one year. In the longer term, the stock delivered 70% returns over three years and 185% over five years.Also read: Morgan Stanley says Indian stock market poised for strong year ahead. Here’s why The company currently has a market capitalisation of more than Rs 73,760 crore. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

According to the filing, the government has proposed to sell up to a 6 per cent stake in NHPC via an OFS on June 2-3 at a floor price of ₹71 per share