Government increases NHPC OFS size to 6% stake sale
The Government of India, acting through the Ministry of Power as the promoter of NHPC Limited, has exercised the oversubscription option for its Offer for Sale (OFS), increasing the total stake sale from 3% to 6% of NHPC’s paid-up equity share capital.
Under the base offer, the government proposed to sell 30,13,51,044 equity shares, representing 3% of the company’s paid-up equity share capital. Following the exercise of the oversubscription option, an additional 30,13,51,044 equity shares will be offered, taking the total offer size to 60,27,02,088 equity shares as of March 31, 2026.
The floor price for the OFS has been fixed at Rs 71 per share.
Reservation structure
Under the offer structure, 10% of the total offer size, equivalent to 6,02,70,210 equity shares, has been reserved for retail investors, subject to valid bids.
The employee reservation portion has also been increased. Eligible employees can now bid for up to 90,40,530 equity shares, comprising the base reservation of 45,20,265 shares and an additional reservation of 45,20,265 shares under the oversubscription option.
Employees are permitted to apply for up to 5,00,000 shares. Bids up to Rs 2,00,000 will be considered for allocation in the first instance.
Nature of the transaction
The transaction is a promoter stake sale, with the Government of India divesting part of its existing shareholding in NHPC.
As the OFS is a secondary market transaction, NHPC will not receive any proceeds from the share sale. Settlement will take place in accordance with standard secondary market procedures.
The Government will continue to remain the dominant shareholder in NHPC after completion of the transaction.
Power sector relevance
NHPC remains one of India’s largest hydropower generation companies, with a portfolio of operational and under-construction hydroelectric projects.
The company also holds strategic relevance in the pumped storage segment, which is expected to play an increasing role in grid balancing, renewable energy integration, and peak load management as solar and wind capacity expands.
Hydropower continues to be positioned as a clean and flexible source of electricity within India’s broader energy transition plans, with NHPC expected to remain an important public sector player in this segment.
The OFS does not affect NHPC’s existing project pipeline, capital expenditure plans, generation targets, or operational mandate. The company will continue execution of its ongoing hydropower and pumped storage projects.
The transaction is also aligned with the Government of India’s broader disinvestment and asset monetisation strategy for central public sector enterprises (CPSEs).
