NHPC OFS : The government has proposed an offer for sale (OFS) of 3.5% stake in renewable energy company NHPC Limited on January 18 and 19, 2024. The OFS includes a base size of 2.5 per cent and a green shoe option of one per cent. The OFS opens for non-retail investors on January 18 and for retail investors on January 19.
The Secretary of Department of Investment and Public Asset Management (DIPAM), Ministry of Finance said in a post on ‘X’, ‘’Offer for sale in NHPC opens tomorrow for non-retail investors. Retail investors can bid on Friday. The government will divest 3.5 per cent equity including green shoe option of one per cent.”
As part of the OFS, the government will sell over 25 crore equity shares in NHPC, with a greenshoe option to sell 10 crore more.
In case of an oversubscription, the government proposes to sell an additional 100,450,348 shares, representing one per cent of the total paid up capital of the company. ‘’The allocation shall be at or above the floor price on price priority basis at multiple clearing prices, in accordance with the SEBI OFS circular, except in case of retail investors, who shall have an option to bid at or above the cut-off price,” said NHPC in its exchange filing.
The floor price of ₹66 a share is at a discount of 9.66% over Wednesday’s closing price of NHPC shares. At the floor price, the OFS would fetch about ₹2,300 crore to the exchequer.
On Wednesday, shares of NHPC settled 0.90 per cent higher at ₹73.06 apiece on the BSE.
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