NHPC OFS 2026: ₹71 floor price for up to 6% stake

What the government announced

The Government of India has launched an Offer for Sale (OFS) in NHPC to divest up to a 6% stake in the state-owned hydropower company. The offer has a base size of 3% and includes a green shoe option to sell an additional 3% if demand is strong. The floor price has been fixed at ₹71 per share. Based on the previous closing price of around ₹77.20, the floor price implies a discount of about 8%.

The sale is part of the government’s disinvestment programme and is being conducted through the stock exchange mechanism. NHPC’s OFS structure allows participation across investor categories over two trading sessions. Retail investors were not offered any separate discount in this transaction, as per the terms disclosed.

Key OFS terms at a glance

The OFS includes a base offer of 3% of NHPC’s paid-up equity capital and a potential total sale of up to 6% if the oversubscription option is exercised. The offer was communicated through official filings and public statements linked to the government’s divestment plan. Investors can bid at or above the floor price, and retail investors also have the option to bid at the cut-off price discovered through the bidding process.

Share count and what 3% means

According to the notice issued by the Ministry of Power dated June 1, 2026, the President of India, acting through the Ministry of Power, proposed to sell 30,13,51,044 equity shares. This quantity represents 3% of NHPC’s paid-up equity capital. The green shoe option can take the total offer size up to about 60.27 crore shares, which corresponds to 6% of the company.

The numbers matter because the green shoe option directly affects potential supply in the market. With the base offer alone, the government is selling a meaningful block. With the option exercised fully, the size doubles, which can influence near-term trading dynamics.

Offer schedule: who can bid and when

The OFS opened for non-retail investors on June 2, 2026. Retail investors, eligible employees, and non-retail investors who opted to carry forward unallotted bids were scheduled to participate on June 3, 2026. This staggered window is typical in OFS processes and is designed to facilitate price discovery among institutions first, followed by retail participation.

The terms also clarify that bids can be placed above the floor price. Retail investors have the additional flexibility of bidding at the cut-off price. Separately, the OFS note mentioned retail investors are allowed to bid up to ₹2 lakh in the OFS, and around 10% of the issue is reserved for retail participants.

How the stock reacted on June 2

NHPC shares came under immediate pressure after the OFS announcement, reflecting investor concerns over incremental supply and pricing at a discount. Reports noted the stock closed at ₹77.20 before the announcement, while the floor price was set at ₹71. Following the news, the stock fell around 6% as the market processed the sale.

On June 2, NHPC was reported to have declined as much as nearly 6% to about ₹72.56 on the NSE. In early trade, it was seen around ₹74.07, down 4.05% for the day. By 11:00 AM on June 2, 2026, the stock was cited at ₹73.23, down 5.13% versus the previous close.

Proceeds estimates: base offer and full 6%

At the floor price of ₹71 per share, estimates for the base 3% offer were cited at around ₹2,140 crore, with a more specific figure of ₹2,139.59 crore also reported. If the green shoe option is fully exercised, the total proceeds were indicated at around ₹4,279 crore at the floor price. Other estimates referenced the sale of over 60.27 crore shares at ₹71 potentially generating approximately ₹4,200 crore.

Some market reporting also pegged the potential raise at “nearly ₹4,300 crore” for a fully subscribed transaction. Separately, an earlier stated estimate put the total possible OFS size at approximately ₹4,820 crore if fully subscribed. Taken together, the consistent anchor in the disclosures is the floor price of ₹71 and the maximum stake sale of up to 6%, while the proceeds figures were presented as approximate in different updates.

Recent performance context

NHPC’s recent trading context was also highlighted alongside the OFS news. The stock was described as having declined more than 6% over the last two sessions at that point. It was also reported to be down about 15% over the past year, underperforming the Nifty 50’s 5.9% decline during the same period.

This background is relevant because OFS transactions often draw added attention when a stock has already been volatile. A discounted floor price can attract demand, but it can also pull the traded price closer to the offer level in the short term.

Market Impact

The clearest immediate impact was on NHPC’s share price, which fell between about 4% and nearly 6% in the sessions and intraday prints cited after the announcement. The discount of around 8% to the prior close was a key driver of sentiment, as it effectively signalled the price at which a large block could be offered. With the government proposing to sell up to 6%, the possibility of additional shares entering the market added to the near-term supply overhang.

The OFS structure also shaped participation. Non-retail investors were allowed to bid first on June 2, followed by retail investors and eligible employees on June 3. The absence of a retail discount and the use of a single floor price of ₹71 were notable terms that investors evaluated while placing bids.

Why this OFS matters: a grounded view

The transaction matters primarily because it is a direct route for government divestment in a large public sector company, with a clearly defined base offer and green shoe option. The base sale of 3% and the potential expansion to 6% create a wide range of potential supply, which markets typically price in quickly. The floor price mechanism also sets a reference point for secondary market trading during the offer window.

For investors tracking public sector disinvestment, the NHPC OFS provides clear signals: the stake size, the two-day bidding schedule, and the pricing discount to the prior close. For NHPC shareholders, the key near-term variable is the extent to which the green shoe option is exercised, which determines whether the offer remains a 3% sale or expands to the full 6%.

Key numbers and timeline

Conclusion

NHPC’s OFS sets a floor price of ₹71 per share for a base 3% sale, with a green shoe option that can take the government’s divestment up to 6%. The discount of about 8% to the prior close triggered an immediate market reaction, with the stock falling between about 4% and nearly 6% in the cited updates. The bidding schedule spans June 2 for non-retail investors and June 3 for retail investors and eligible employees. The final size of the stake sold will depend on demand and whether the oversubscription option is exercised.