The government, on Monday, announced the OFS with a base size of 3% of the company’s equity and a green shoe option to sell an additional 3% in case of over-subscription, the department of investment and public asset management (DIPAM) secretary said.
Sources told CNBC-TV18 that the base issue size will be worth ₹2,139.59 crore, and a similar quantum for the green shoe option as well. In case both are fully subscribed, the government could fetch nearly ₹4,300 crore through this exercise.
Floor price for the Offer for Sale has been fixed at ₹71 per share, which is a discount of 8% from the stock’s previous closing price.
The OFS will open for retail investors on Wednesday, June 3.
At the end of the March quarter, the government held 67.4% stake in the company, as per data available on the stock exchanges.
The company reported its fourth quarter earnings last month. Its net profit increased 68.5% to ₹1,549 crore from ₹919.6 crore last year, while revenue was up 20% to ₹2,816 crore from ₹2,347 crore in the fourth quarter of the previous fiscal.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 0.7% to ₹1,196 crore from ₹1,205 crore last year, and margins contracted to 42.5% from 51.3% in the year-ago period.
NHPC shares ended the previous session 2.3% lower at ₹77.05 apiece. The stock has declined 7.5% in the past month.
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