NHPC OFS oversubscribed 3.47x; Govt exercises full 3% greenshoe option
Synopsis
The Centre's NHPC OFS got a 3.47x institutional thumbs-up on Day 1 — strong enough that the government exercised its full greenshoe, doubling the stake on offer to 6%. With the stock closing 6.9% lower at ₹71.93, just above the ₹71 floor, the sale is a key marker for FY27 disinvestment momentum.
Key Takeaways
The Centre's NHPC OFS was oversubscribed 3.47 times on Day 1 (non-retail) on 2 June .
The government exercised the entire 3% greenshoe , raising the total stake on offer to 6% .
Floor price set at ₹71 per share ; allocations on a price-priority basis.
Retail investors and eligible employees can bid on 3 June ; employee cap at ₹5 lakh .
NHPC shares closed 6.9% lower at ₹71.93 on the NSE .
Proceeds feed into the Centre's FY27 disinvestment kitty.
The Centre on Tuesday exercised the entire 3 per cent greenshoe option in its Offer for Sale (OFS) in National Hydroelectric Power Corporation (NHPC) Limited, after the issue was oversubscribed 3.47 times on the first day of bidding by non-retail investors, according to a regulatory filing. The move doubles the total stake on offer to 6 per cent from the original 3 per cent.
Key Developments
The sale was launched with a floor price of ₹71 per share, with allocations to be made on a price-priority basis. Retail investors and eligible employees will be able to participate in the OFS on 3 June.
“A total of 6,02,70,210 Equity Shares i.e. 10 per cent equity shares of the offer would be reserved for Retail Investors, subject to receipt of valid bids,” the statement noted.
Employee Quota and Allocation
Up to 45,20,265 equity shares may be offered in addition to the 45,20,265 equity shares already earmarked — aggregating up to 90,40,530 equity shares under the Employee Offer to eligible employees of the company. Eligible employees may apply for equity shares of up to ₹5 lakh.
The OFS, conducted through the stock exchanges, is aligned with the Centre's disinvestment objectives for FY27.
How the Stock Reacted
Notably, shares of NHPC closed 6.9 per cent lower at ₹71.93 per share on the NSE on Tuesday, hovering just above the OFS floor price — a typical pattern when supply expectations weigh on the counter.
NHPC's Strategic Footprint
India's leading hydropower and renewable energy company, NHPC is a Navratna public sector undertaking under the Ministry of Power. The company recently executed the first blast for the 240 MW Uri-I Stage-II Hydro Electric Project in Jammu and Kashmir, formally commencing key construction activities — a major milestone for the Union Territory's power sector.
NHPC is also executing multiple large-scale projects in Jammu and Kashmir, largely through joint ventures including Chenab Valley Power Projects Limited (CVPPL) and Ratle Hydroelectric Power Corporation Limited (RHPCL).
What's Next
With non-institutional demand already locked in, attention shifts to the retail and employee leg on 3 June, which will determine the final realisation for the exchequer. The successful subscription bolsters the Centre's FY27 disinvestment pipeline and could set the tone for upcoming PSU stake sales.
Point of View
But the 6.9% one-day slide to ₹71.93 — barely above the ₹71 floor — tells the fuller story: OFS pricing in PSU counters continues to drag the cash market on announcement day, a recurring pattern in Indian disinvestment. Exercising the full greenshoe is a confidence signal, yet the real test is whether retail demand on Day 2 holds the floor without further price erosion. For FY27, the Centre will need more such well-bid PSU sales — and a sharper communication playbook to limit pre-OFS slippage.
NationPress
1 Aug 2026
Frequently Asked Questions
What is the NHPC OFS and how oversubscribed was it?
It is the Centre's Offer for Sale of NHPC shares, which on Day 1 (2 June) was oversubscribed 3.47 times by non-retail investors. On the back of strong demand, the government exercised the full 3% greenshoe option, taking the total stake on offer to 6%.
What is the floor price of the NHPC OFS?
The floor price has been set at ₹71 per share, with allocations made on a price-priority basis. NHPC shares closed at ₹71.93 on the NSE on 2 June, just above the floor.
When can retail investors and employees bid in the NHPC OFS?
Retail investors and eligible employees can participate on 3 June. About 6,02,70,210 equity shares — 10% of the offer — are reserved for retail bidders, while eligible employees can apply for shares of up to ₹5 lakh.
How does the NHPC OFS fit into the Centre's disinvestment plan?
The OFS is being conducted through stock exchanges and contributes to the Centre's disinvestment objectives for FY27. A successful retail leg on Day 2 would strengthen the government's pipeline for further PSU stake sales.
Why did NHPC shares fall on the day of the OFS?
NHPC shares closed 6.9% lower at ₹71.93 on the NSE on 2 June, reflecting the typical supply overhang that accompanies large OFS announcements. The stock has settled near the ₹71 floor price set for the sale.
