Shares of NHPC saw a 6% plunge on Thursday after the central government announced an offer for sale (OFS) to divest up to a 3.5% stake in the company. 

NHPC shares hit an intraday low of Rs 68.55, down 6.1% from its previous closing price on the National Stock Exchange (NSE). The stock closed 3.15% lower at Rs 70.70. 

In an exchange filing on January 18, the state-owned power company stated that the Ministry of Power, Government of India, plans to sell 2.5% of the paid-up equity capital held in NHPC Ltd, equivalent to 25.11 crore equity shares with a face value of Rs 10 each. 

The OFS includes an additional 1% stake or about 10 crore equity shares offered through the Green Shoe option. The OFS will open on January 18 for non-retail investors and on January 19, 2024, for retail investors and non-retail investors who choose to carry forward their unallotted bids.  

The floor price of the sale is fixed at Rs 66 a share, which is a discount of 6.6% over Thursday’s closing price of NHPC shares. The OFS would garner about Rs 2,300 crore to the exchequer at the floor price.

Equity shares equivalent to up to 3% of the shares up for sale may be offered to eligible employees of the company under the Employee Offer, subject to regulatory approval.