The government has proposed to sell a partial stake in renewable energy major NHPC Ltd through an offer for sale on Thursday and Friday.
The government plans to sell 251,125,870 shares, representing a 2.5% stake in NHPC and has set the floor price at Rs 66 a share. This is at a steep discount of nearly 10% from the current market price.
On Wednesday, shares of NHPC ended nearly 1% up on the National Stock Exchange at Rs 73.
The government proposes to sell an additional 100,450,348 shares, representing 1% of the total paid up capital of the company, in case of an oversubscription.
The OFS will open for subscription to institutional investors on Thursday, and for retail investors on Friday.
A minimum of 25% of the offer has been reserved for mutual funds and insurance companies, while 10% for retail investors.
As of December-end, the government held nearly 71% stake in the PSU major.
So far in the current fiscal year, the government has raised a little over Rs 10,000 crore through disinvestment. The last OFS that it did was in SJVN in September, through which it raised Rs 1,349 crore.
So far in the current fiscal year, the government has sold stake in Coal India, Hindustan Aeronautics, Housing and Urban Development Corporation, IRCON International, Rail Vikas Nigam, and SJVN via OFS, helped by the strong momentum in equities.
Power stocks have rallied significantly over the last one year, aided by the strong demand, capacity additions and government’s increased focus on renewable energy.
NHPC shares have rallied more than 78% in the last one year and outperformed the Nifty by a wide margin.
Source: Economic Times