NHPC shares jump 5% as OFS worth Rs 4,300 crore opens for retail investors. Here’s all you need to know

The shares of NHPC jumped more than 5% as the offer for sale (OFS) through which the government is selling up to 6% stake in the company opens for retail investors today, after an overwhelming response from non-retail investors on the first day of subscription.

The government on Tuesday decided to exercise the green shoe option in the 6% stake sale in NHPC after the OFS was oversubscribed 3.47 times on the first day. “Offer for Sale in NHPC Limited received enthusiastic response from investors and was oversubscribed 3.47 times on the first day. Allocation will be on a price priority basis. The government has decided to exercise the entire green shoe option. Retail investors and employees get to bid on 3rd June 2026,” Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.

Also Read | NHPC OFS subscribed nearly 3.5 times on Day 1, Govt to exercise green shoe option

All about NHPC’s OFS

NHPC announced on Monday that the government aims to sell 3% of the company’s total paid-up equity capital as part of the base offer, along with an oversubscription option to sell an additional 30 crore shares, taking the total potential offer size to 60.27 crore shares or 6% equity. At the floor price of Rs 71 per share, this would be worth more than Rs 4,279 crore.The shares of NHPC had crashed over 6% on Tuesday as the OFS floor price of Rs 71 per share implied a discount of nearly 8% to Monday’s closing price, weighing on investor sentiment. However, the strong interest from institutional investors may have boosted confidence.

The government owned more than 67% stake in the PSU company as of March 31, 2026. The share sale by its promoter is being conducted through a separate window mechanism on BSE and the National Stock Exchange in accordance with the Securities and Exchange Board of India’s OFS guidelines.

NHPC’s OFS comes days after the government divested some of its stake in state-run miner Coal India through an offer for sale at a floor price of Rs 412 per share. The government owned more than 63% stake in the PSU company as on March 31, 2026.

Also Read | NHPC shares tumble 5% as govt’s OFS worth up to Rs 4,300 crore opens at 8% discount. Check details

NHPC share price

NHPC shares have fallen around 7% in one week and 9% in one month. The stock is down more than 5% in 2026 so far. In the longer term, the shares of the PSU have fallen 12% in one year, but gained more than 74% in three years and 190% in five years.The company currently has a market capitalisation of more than Rs 75,709 crore. The stock’s P/E ratio stands at 17.

What lies ahead for NHPC shares?

For a long term, dividend oriented investor comfortable with a low yield utility, the entry at a discount is attractive, said Abhinav Tiwari, Research Analyst at Bonanza. NHPC’s earnings can be lumpy and seasonal (hydro depends on water flows), capex is heavy and project timelines often slip, he added.

“The stock does not appear particularly cheap on current valuations. However, the Rs. 71 level provides a reasonable margin of safety, as it is close to the stock’s 52-week low and limits downside risk relative to the current market price. Although its expanding project pipeline and capacity additions are positive long term drivers, current valuations already factor in a strong recovery. Returns will depend heavily on successful execution and improvement in operational profitability,” the analyst further said.

Technical view on NHPC

Virat Jagad, Senior Technical Research Analyst at Bonanza, said the NHPC’s recent sharp decline on exceptionally high volumes suggests aggressive selling activity and a breakdown of short-term support near Rs 78. He placed the immediate support near Rs 72–73, while resistance is seen around Rs 78–80.

“A sustained move above Rs 80 would be required to improve the technical outlook and open the possibility of a recovery towards Rs 84–86,” he added.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)