NHPC to exercise oversubscription option; to sell additional 1% stake in OFS

19 Jan 2024 , 03:17 PM

Following a strong response to NHPC’s offer for sale (OFS) from institutional investors, the government has chosen to execute the greenshoe option and sell an extra 1% interest in the renewable energy company.

On Wednesday, the government announced that it is planning to sell 251,125,870 shares, representing a 2.5% interest in NHPC, at a minimum price of Rs 66 per share. This represented an almost 10% discount on the stock’s closing price.

Furthermore, the government stated that if there is an oversubscription, it will sell an extra 100,450,348 shares, representing a 1% stake. The OFS, which began for institutional investors on Thursday, received a stunning 403% subscription.

The OFS will open to retail investors on Friday, with the government reserving 10% of the issue amount for them. As of the end of December, the government-owned about 71% stake in the PSU major.

So far in the current fiscal year, the government has raised little more than Rs 10,000 crore through disinvestment. The last OFS it conducted was in SJVN in September, raising Rs 1,349 crore.

At around 3.07 PM, NHPC was trading 3.87% higher at Rs 73.85, against the previous close of Rs 71.10 on NSE.

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