NHPC share price: The company’s stock fell more than 5 per cent after the Government of India unveiled plans to divest up to a 6 per cent stake in the hydropower major through an Offer for Sale. According to the Department of Investment and Public Asset Management, the OFS will be conducted with a floor price of Rs 71 per share. The issue will open for non-retail investors on June 2, while retail investors will be able to participate on June 3.
The stake sale consists of a base offer of 3 per cent of NHPC’s equity. In addition, the government has retained a greenshoe option to sell another 3 per cent stake in case of strong investor demand, taking the total offer size to 6 per cent. The move is aimed at helping the government meet its divestment targets while increasing public participation in the state-owned hydropower company’s shareholding. NHPC is one of India’s leading hydroelectric power producers and operates several power generation projects across the country.
On a year-to-date basis, NHPC shares are down 7.91 per cent, slightly underperforming the index decline of 1.04 per cent. On a one-year basis, the stock has slipped 16.09 per cent, compared with a 6.51 per cent gain in the benchmark midcap index.
However, NHPC has delivered strong returns over the longer term. The stock has gained 69.61 per cent over the past three years, although this trails the index return of 78.23 per cent. Over a five-year period, NHPC has surged 183.99 per cent, outperforming the Nifty Midcap 50, which has risen 135.74 per cent during the same timeframe.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
