Shares of NHPC, a public sector undertaking, declined nearly 5% to ₹73.42 on Tuesday as the government initiated an offer for sale (OFS) to divest up to 6% of its stake. The OFS is priced at ₹71 per share, representing an 8% discount to the previous closing price, which has negatively affected investor sentiment. The government plans to sell 3% of the company’s total paid-up equity capital as part of the base offer, with an oversubscription option for an additional 30 crore shares, potentially raising over ₹4,279 crore. The OFS began for non-retail investors on June 2, while retail investors can participate on June 3. NHPC's stock has seen a decline of over 12% in the last month and is down approximately 8% in 2026. Despite the recent downturn, the company has shown strong long-term performance, with a 70% return over three years and 185% over five years.