Indian Government plans to sell 2.5% of its stake in the NHPC OFS (offer for sale). The company generates hydroelectric power. It takes up several electricity projects in the country. The government will sell 251,125,870 shares at the floor price of Rs. 66 per share. After the shares performed well in the market, the government introduced another 1% of the stake, consisting of 100,450,348 shares in total. It concludes with 3.5% of the stake in total.
NHPC OFS: Government to Sell 3.5% Stakes via Offer for Sale, Should You Invest?
The Indian government is providing an offer-for-sale on its 2.5% stake in NHPC. As the share price went up by 1%, the company brought an additional 1%. The OFS will be divided into different categories of investors. Mutual Funds will get around 25% of the shares. While the retail investors will get 10%. The OFS will be available from Thursday for institutional buyers and Friday for retail buyers.
The government has sold several other company’s stakes as well. These are Coal India, Hindustan Aeronautics, RVNL, IRCON, and others. Several questions as to whether to buy NHPC or not are being raised. It comes under the sector of electricity and power. The sector witness immense growth during the year. HPC share rose by 70% in one year. It expects to maintain the pace in the upcoming year. The previous year gave the maximum growth in the share. However, there is uncertainty and speculations of a fall in the share price as well.
NHPC shares can be brought through mutual funds as a retail investor. The government has given 25% of the offer for sale in Mutual Funds. It can be a good chance to enter the power sector. The government will get around 23.2 billion rupees from the divestment. It puts the money into further use cases. Currently, the government holds a good percentage of the company.
NHPC shares saw a fall after the government decided to sell the shares. There is an increase in the selling, leading to a fall in the value of the shares. The company was started on 7 November 1975 by the government of India. It plays a crucial role in the planning and generation of hydroelectric projects in the country. The company has a debt-to-equity ratio of 73.2%. It has a market cap of 70.88 Thousand Crores with 52 week high of 75.30. We hope you get enough details about NHPC and the government’s OFS above.