The shares of India’s largest Hydropower generation company fell 6 percent to Rs 68.73 per share on Thursday after the government planned to sell up to a 3.5% stake in the company via OFS for about ₹2,300 crore.
At 1.15 p.m., NHPC Ltd shares were quoted at ₹ 69.69 per share, down 4.61 percent from the previous close price. The company has a market capitalization of ₹70,064 crore.
The Government of India planned to sell up to 3.5 percent stake in the company via offer-for-sale (OFS), with a floor price of Rs 66 per share. i.e. 9% discount from Wednesday’s closing price. As per report estimates OFS could fetch about ₹2,300 crores to the government.
The OFS comprises a base issue size of 2.5 percent and a green shoe option of 1 percent. OFS will open for non-retail investors on January 18 and retail investors on January 19.
For retail investors, the total number of equity shares being offered is up to 251,125,870 equity shares of the Company face value of 10/- each.
Through the Greenshoe option maximum number of equity shares offered up to 100,450,348 equity shares of the Company. The company said in its exchange filing.
NHPC’s revenue has declined by 13 percent yearly, from ₹ 3,366 crore in Q2FY23 to ₹2,931 crore in Q2FY24. In the same time frame, net profit has slightly increased by 0.6 percent from ₹ 1,683 crore to ₹1,693 crore.
NHPC Ltd shares have gained 52 percent in the last six months and 65 percent in a year.
NHPC(National Hydroelectric Power Corporation) is a Mini Ratna category I public sector utility. The company is primarily engaged in the generation and sale of bulk power to various Power Utilities. Also, the company is involved in the business of providing project management/construction contracts/ consultancy assignment services and trading power.
NHPC has received ₹ 5,065 Crore from beneficiaries against the sale of power during Half Year FY ’24. Trade receivables stood at ₹ 5,970 Crore, including ₹.2,685 Crore as Unbilled Debtors as of September 30, 2023.
In the latest shareholding pattern, the government holds a 70.95 percent stake, Domestic Institutional Investors hold a 13.42 percent stake and retail investors hold a 6.73 percent stake in the company.
Written by Omkar Chitnis
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