New Delhi : The Government of India, through the Ministry of Power, has launched an Offer for Sale (OFS) in NHPC Limited, offering investors an opportunity to acquire shares in one of the country’s leading hydropower producers. The offering opened for institutional and non-retail investors on June 2, 2026, while retail investors and eligible employees will be able to participate on June 3, 2026.
The stake sale forms part of the government’s ongoing disinvestment program aimed at enhancing public shareholding and generating additional non-tax revenue.
Government Plans to Sell Up to 6% Stake
Under the OFS, the government is initially offering 30,13,51,044 equity shares, representing a 3% stake in NHPC. It has also retained an oversubscription option to sell an additional 30,13,51,044 shares, taking the total potential divestment to 6% of the company’s paid-up equity capital.
The floor price for the offer has been fixed at ₹71 per share.
Offer Structure
- Company: NHPC Limited
- Seller: President of India through the Ministry of Power
- Floor Price: ₹71 per equity share
- Base Offer: 30,13,51,044 shares (3%)
- Oversubscription Option: 30,13,51,044 shares (3%)
- Total Potential Sale: 60,27,02,088 shares (6%)
- Stock Exchanges: BSE and NSE
At the floor price of ₹71, the government is expected to raise approximately ₹2,140 crore through the base offer. If the oversubscription option is fully exercised, total proceeds could reach nearly ₹4,280 crore.
Retail Investors Get Reserved Allocation
In accordance with SEBI’s OFS regulations, 10% of the offered shares have been reserved for retail investors.
Individual investors can submit bids for shares worth up to ₹2 lakh under the retail category. Retail participants may either:
- Place bids at a price above the floor price, or
- Opt for the Cut-Off Price, which will be determined based on demand and successful bids received from non-retail investors.
The retail bidding window will open on June 3, 2026.
Special Reservation for NHPC Employees
The government has also created a dedicated employee category under the OFS.
Up to 45.20 lakh shares may be allocated to eligible NHPC employees. Employees can apply for shares worth up to ₹5 lakh, although priority allotment will initially be considered for applications up to ₹2 lakh.
The employee reservation is intended to encourage broader participation among the company’s workforce and strengthen employee ownership.
Institutional Investors Allocation
Institutional participation remains a key component of the offering.
Under the OFS framework:
- A minimum of 25% of the offer size has been reserved for mutual funds and insurance companies.
- Institutional investors may participate without upfront payment, subject to applicable settlement procedures and custodian confirmations.
- Bids must be placed at or above the floor price to be considered valid.
The institutional bidding session commenced on June 2, 2026.
Part of Government’s Broader Disinvestment Drive
The NHPC share sale aligns with the Government of India’s broader strategy to monetize investments in public sector enterprises while improving market liquidity and public ownership.
NHPC continues to play a critical role in India’s energy landscape, operating a large portfolio of hydropower projects and expanding its footprint in the renewable energy sector, including solar and green energy initiatives.
The company remains one of the country’s strategically important power-sector public enterprises and contributes significantly to India’s clean energy objectives.
Lead Brokers for the Transaction
The government has appointed three leading financial institutions to manage the OFS process:
- ICICI Securities Limited
- Goldman Sachs (India) Securities Private Limited
- SBICAP Securities Limited
These institutions will oversee bidding, allocation, and execution of the transaction through the stock exchange mechanism.
Outlook
The NHPC OFS 2026 is expected to attract strong interest from institutional and retail investors due to the company’s established position in India’s power sector and the attractive pricing structure. The transaction represents another significant step in the government’s ongoing efforts to deepen capital markets, increase public participation in state-owned enterprises, and generate resources for future development initiatives.
