After Coal India, Central Bank divestments, govt taps NHPC for up to 6% stake sale

After recent stake sales in major public sector enterprises such as Coal India and Central Bank of India, the Centre has launched another divestment exercise in state-owned hydropower company NHPC. The government, which held a 67.40% stake in NHPC at the end of the March quarter, plans to offload up to 6% equity through an offer for sale (OFS).

The OFS comprises a base offer of 3% equity and an additional 3% greenshoe option that can be exercised in the event of strong investor demand. The issue will open for non-retail investors on June 2, while retail investors can bid on June 3 under the standard two-day OFS mechanism.

The floor price has been fixed at ₹71 per share, representing a discount of about 8% to NHPC's closing price of ₹77.19 on the BSE on Monday.

"Government of India announces OFS in NHPC Ltd with a base offer of 3% of its equity and an additional 3% Green Shoe Option in case of over subscription. Floor price fixed at Rs 71 per share," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.

At the floor price, the government stands to raise nearly ₹4,200 crore if the entire 6% stake is sold. Retail investors can place bids worth up to ₹2 lakh and will have a dedicated reservation in the issue, along with the possibility of a discount on the final allotment price.

NHPC, a Navratna PSU under the Ministry of Power, is India's largest hydropower producer, operating over 7,000 MW of hydro and renewable energy capacity. The company is also expanding into solar and pumped-storage projects as part of India's clean energy transition.

The proposed stake sale comes amid the government's broader disinvestment push. Last week, the Centre raised ₹5,542 crore by selling a 2% stake in Coal India, while the sale of an 8.08% stake in Central Bank of India in May fetched ₹2,266 crore. Together, these transactions have generated around ₹7,800 crore in disinvestment proceeds so far in FY27.

For FY27, the government set a target of ₹80,000 crore from disinvestment and asset monetisation in the Union Budget 2026, more than double the revised estimate of ₹33,837 crore for FY26.

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