NHPC OFS 2026: Stock jumps 5% as 6% sale expands

What drove NHPC shares higher

NHPC shares climbed over 5% after the government’s offer for sale (OFS) drew a strong response from non-retail investors on the first day. Exchange data showed the OFS was subscribed 3.47 times, which led the government to exercise the greenshoe option. The move expanded the stake sale to the full 6% on offer, a key development that improved sentiment after the stock had weakened on the floor-price discount. On Wednesday, the stock rose 5.24% to an intraday high of Rs 76.07 on the BSE.

The OFS structure: base offer plus greenshoe

NHPC had disclosed that the government planned to sell 3% of the company’s paid-up equity as the base offer, with an option to sell an additional 3% if demand was strong. The sale was launched by the President of India through the Ministry of Power. The base offer comprised 30.13 crore shares, and the oversubscription (greenshoe) option was for another 30.13 crore shares. With the greenshoe exercised, the total OFS size rose to 60.27 crore shares, equivalent to around 6% of NHPC’s equity as of March 31, 2026.

Key dates and who can bid

The OFS opened for non-retail investors on June 2, 2026. Retail investors, eligible employees, and non-retail investors carrying forward unallotted bids could participate on June 3, 2026. DIPAM Secretary Arunish Chawla confirmed the retail and employee bidding date in a post on X. The OFS runs through a separate window on stock exchanges during trading hours, starting at 9:15 am IST and closing at 3:30 pm.

Floor price and the discount that hit the stock first

The government set a floor price of Rs 71 per share for the OFS. Reports noted this implied a discount of nearly 8% to the prior close, and one reference point cited NHPC’s previous closing price at Rs 77.19 on the BSE. The discount weighed on sentiment initially, and NHPC shares fell sharply on June 2. The stock was also reported to have fallen nearly 5% to Rs 73.42 apiece on Tuesday after the OFS launch, with another mention of a more than 6% drop.

Subscription numbers: day 1 non-retail rush

The first day saw heavy demand from non-retail investors. Bids were received for 94.21 crore shares against the non-retail offer size of 54.24 crore shares, resulting in subscription of 173.69% for that segment, according to one data set. Another set of exchange data highlighted 94,21,29,951 bids against a base quota of 27,12,15,939 shares, equating to 347.37% or 3.47 times. The strong response was the trigger for the government to exercise the full oversubscription option.

Day 2 update: retail participation trends

On the second day, the retail portion attracted bids for 11.48 crore shares against a retail offer size of 6.02 crore shares, translating into subscription of 190.49%. The non-retail carry-forward segment received bids for 3.12 crore shares, described as 51.79% of the retail offer size. Overall, bids for 14.60 crore shares were received on the second day, resulting in a subscription of 242.28% against the retail portion. Separately, exchange data also showed the retail portion receiving bids for 60,33,569 shares, or 20.02% of an offer size of 3,01,35,105 shares, at an indicative price of Rs 71.50.

How much could the sale raise for the government

At the floor price of Rs 71 per share, the full 6% sale was estimated at more than Rs 4,279 crore. Other estimates in the coverage pegged the expected proceeds around Rs 4,200 crore, and one report said the stake sale could fetch up to about Rs 4,650 crore at the floor price. The base offer alone was estimated at around Rs 2,139.59 crore at Rs 71 per share. These figures reflect differing estimate snapshots, but they all point to a multi-thousand-crore divestment from a single PSU transaction.

Market impact: price action and investor positioning

The immediate market impact was a two-step reaction. First, the discount-led floor price announcement drove a sharp drop on June 2, with the stock cited near Rs 73.42 and reports of a 4% to 6% decline. Second, robust subscription from non-retail investors and the decision to exercise the greenshoe supported a rebound, with NHPC rising over 5% and hitting Rs 76.07 intraday. The oversubscription data also signalled strong institutional demand, which often influences near-term price discovery in OFS transactions.

Key numbers at a glance

Why the greenshoe decision matters

The government’s choice to exercise the full greenshoe option indicates it found sufficient demand to sell the additional 3% stake. From a market perspective, this changes the supply dynamics because the total number of shares offered increases materially from the base size. It also signals that the disinvestment process is responsive to demand, with oversubscription translating into a larger sale. For investors tracking PSU divestments, NHPC’s OFS is a clear example of how demand, discount levels, and subscription data can affect both the final size of the offer and short-term price moves.

Closing note

NHPC’s OFS moved quickly from a discount-led sell-off to a demand-led rebound, as subscription data pushed the government to expand the sale to the full 6%. Retail investors and eligible employees can bid on June 3, 2026, while the offer window remains open during exchange trading hours. The next key datapoints will be final subscription levels and post-OFS trading once allotment-related flows settle.