NHPC OFS gets strong response, retail investors to bid today: What you should know

Shares of NHPC Ltd are in focus on Wednesday, as offer for sale (OFS) by the government received a solid response from non-retail investors, with the issue receiving 347.37 per cent or 3.47 times bids, data available with BSE suggested. 

Only non-retail investors and NHPC employees were allowed to bid on Tuesday. Retail investors, individuals, who place bids for offer shares of total value of not more than Rs 2,00,000, could participate in the OFS today. The government held 67.40 per cent stake in NHPC as of March 31, 2026. 

NHPC OFS: Govt to sell up to 6% stake

With the OFS, the government intends to sell up to 6 per cent stake. It is looking to offload 3 per cent stake as a base size, keeping an option to sell a further 3 per cent in the case of oversubscription. The strong investor response on Day 1 of the two-day issue comes as the OFS was set at a floor price of Rs 71 apiece, which was at a 7.85 per cent discount to Monday's closing price of Rs 77.05 per share.

"Only retail investors shall be allowed to place their bids only on T+1 Day. Further, those employees and non-Retail investors who have placed their bids on T Day and have chosen to carry forward their unallotted bids to T+1 Day, shall be allowed to revise their bids on T+1 Day as per the SEBI OFS Circular," NHPC said.

NHPC share price targets

Kotak Institutional Equities in a note on June 1 suggested 'Sell' on NHPC with a target price of Rs 72, just above the OFS price. ICICI Securities had on May 19 said that earnings from new power plants could remain subdued till the final tariff order is issued, and there is no significant difference between approved capital cost and actual capital cost. 

"We estimate earnings to increase by 100 per cent in FY27E (assuming full cost recovery). We maintain REDUCE with an unchanged target of Rs 72," the domestic brokerage said.

"After a seven-year gap since the 330MW Kishanganga project in 2018, the company has seen progressive commissioning of 800MW Parbati-II and 2,000MW of Subansiri. We expect regulated equity to rise to Rs 32,100 crore by FY28E from Rs 18,300 crore currently. We maintain ADD on the sole large utility that boasts a 100% green energy portfolio, with a TP of INR 86 (earlier INR 84) based on 1.8x P/B FY28E," JM Financial aid on May 19.