NHPC tumbles ~5% as govt plans to divest 3.5% stake worth Rs 2,300 crore via OFS

18 Jan 2024 , 01:27 PM

Shares of NHPC plummeted 5% at the beginning on January 18 as the government chose to sell up to 3.5% of the PSU in an Offer for Sale at a minimum price of Rs 66 per share, a reduction of more than 9% from yesterday's closing price. The state-run hydropower producer's shares increased 1.2% yesterday, after a surge in other PSU stocks, to close at Rs 73.25.

At around 1.21 PM, NHPC was trading 4.93% lower at Rs 69.40, against the previous close of Rs 73 on NSE. 

In a regulatory filing on January 17, the business stated that non-retail investors would be able to participate in the NHPC Offer for Sale (OFS) on January 18. Bidding for Retail Investors will begin on Friday. 

According to the OFS, the government would sell approximately 25 crore equity shares in NHPC (with a green shoe option to sell an additional 10 crore) at a floor price of Rs 66 per. According to projections, the OFS might generate over Rs 2,300 crore for the government.

In Q2FY24, the state-owned NHPC recorded a consolidated profit of Rs 1,546 crore for the quarter ended September 2023, up 0.7% year-on-year from the previous year. Revenue from operations increased by 11.6% year-on-year to Rs 2,931.3 crore during the reporting period. NHPC is yet to release its Q3 profits.

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