NHPC OFS: The government is set to divest a 3.5% stake in renewable energy major NHPC Ltd through an offer-for-sale (OFS) scheduled for January 18 and 19, 2024. The OFS comprises a base size of 2.5% and a green shoe option of one percent. Non-retail investors will have access to the OFS on January 18, while retail investors can participate on January 19.
The Secretary of the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, shared the announcement on a post on ‘X,’ stating, “Offer for sale in NHPC opens tomorrow for non-retail investors. Retail investors can bid on Friday. The government will divest 3.5% equity, including a green shoe option of one percent.
Key points for individual investors:
- You can purchase NHPC shares worth up to Rs. 2 lakh in total across all stock exchanges. This category is reserved for retail investors like you and me.
- If the offer receives more orders than available shares (oversubscription), the government might sell an additional 1% of the company’s total shares.
- If there are more bids than shares available, shares will be allocated at or above the minimum price (floor price), with priority given to orders offering higher prices. This applies to everyone except retail investors.
- As a retail investor, you have the option to bid at or above the final price (cut-off price) determined after considering all bids.
- The minimum price for each share is set at Rs. 66, which is about 10% cheaper than the current market price. This means you can potentially buy NHPC shares at a discount.
- If all shares are sold at the floor price, the government expects to raise around Rs. 2,300 crore from this sale.
NHPC’s shares ended the day on the BSE 0.90 percent higher at ₹73.06 a share.