Navratna Stock Crashes 5% as Govt Launches ₹4,300 Cr OFS at 8% Discount

Synopsis: NHPC shares fell 5% after the Government of India launched an Offer for Sale (OFS) at a floor price of Rs. 71 per share, an 8% discount, aiming to divest up to a 6% stake.

The company is primarily involved in the generation and sale of bulk power to various Power Utilities and other business includes providing project management, construction contracts, and consultancy assignment services are in the spotlight after it fell by 5 percent in today’s session following the government launches OFS.

With a market capitalisation of Rs. 73,810 cr, the shares of NHPC Ltd were trading at Rs. 73.48, decreasing 5% in today’s market session, making a low of Rs. 73.37, down from its previous close of Rs. 77.19 per share. The stock has declined 16% over the past year, 8% year-to-date, 5% over the last six months, and 12% in the past month.

NHPC OFS Launches for Institutional Buyers

The Government of India has initiated an Offer for Sale (OFS) for its stake in NHPC Ltd, opening the window for non-retail/institutional investors on Tuesday, June 2, 2026. This move is part of the government’s ongoing disinvestment drive, following recent stake sales in other public sector entities like Coal India and the Central Bank of India. The subscription window for retail investors is scheduled to open the following day, on Wednesday, June 3.

Floor Price and Steep Discount

The floor price for the OFS has been fixed at Rs. 71 per share. This price reflects a notable 8% discount from the stock’s previous closing price. Responding to the discount and the supply of new shares, NHPC’s share price slid by 5% in early equity trading on Tuesday, hitting roughly Rs. 74.73 per share.

The disinvestment includes a base issue size of 3% of the company’s total equity, with a green shoe option to offload an additional 3% in the event of over-subscription. According to the sources, the base issue is valued at approximately Rs. 2,139.59 crore. If institutional and retail demand prompt the full utilisation of both the base and green shoe options (6% stake total), the government stands to raise nearly Rs. 4,300 crore from the liquidation. Prior to this sale, the government held a 67.4% majority stake in the utility company.

NHPC Ltd is India’s largest hydropower development company and a leading public sector enterprise under the Ministry of Power. The company is primarily engaged in the development, operation, and maintenance of hydroelectric power projects. In recent years, NHPC has diversified into solar and wind energy projects, supporting India’s transition toward a cleaner and more sustainable energy mix.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Navratna Stock Crashes 5% as Govt Launches ₹4,300 Cr OFS at 8% Discount appeared first on Trade Brains.