NHPC's Offer for Sale Sees Strong Demand, Green Shoe Option Fully Exercised
NHPC OFS oversubscribed 3.47 times, govt exercises green shoe option
Image: Asianet Newsable
The government's Offer for Sale (OFS) in NHPC Limited was oversubscribed 3.47 times on its opening day, prompting the government to exercise the full 3% green shoe option, raising the total stake sale to 6%. Retail investors can bid on June 3.
- 01The NHPC OFS was launched with a base offer of 3% equity at a floor price of ₹71 per share.
- 02A total of 60,27,02,088 shares will be available for sale after the green shoe option is exercised.
- 03Eligible employees can apply for up to ₹5 lakh, with a priority allocation for the first ₹2 lakh.
- 04Recent trends show strong demand in public sector undertakings (PSUs), with Coal India and Central Bank also experiencing high oversubscription.
- 05The government's ongoing disinvestment drive includes major proposals for LIC and IDBI Bank.
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The Offer for Sale (OFS) in NHPC Limited, launched by the Indian government, has garnered significant investor interest, being oversubscribed 3.47 times on its opening day. This strong demand has led the government to exercise the full 3% green shoe option, increasing the total stake sale to 6% of the company's paid-up equity. The OFS was initiated with a base offer of 3% of equity at a floor price of ₹71 per share, totaling 60,27,02,088 shares after including the green shoe option. Eligible employees are allowed to apply for shares up to ₹5 lakh, with a priority allocation for the first ₹2 lakh. This transaction is part of the government's broader disinvestment strategy, which has seen similar successful stake sales in other public sector undertakings (PSUs) like Coal India and Central Bank. The focus will now shift to retail and employee bidding scheduled for June 3.
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The successful NHPC OFS allows the government to raise significant funds, which may impact public sector investment and infrastructure projects.
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