NHPC shares experienced a more than 4% decline as the government announced an offer for sale, with the stock trading at Rs 69.80, down 4.4% on the BSE. The President of India, represented by the Ministry of Power, aims to sell 2.50% of NHPC Ltd's paid-up equity, equivalent to 251,125,870 shares with a face value of Rs 10 each. The sale is scheduled for January 18, 2024, for non-retail investors and January 19, 2024, for retail investors, with an oversubscription option of up to 1.00% of the company's paid-up equity.
Additionally, eligible employees may apply for equity shares, with a maximum investment limit of Rs 500,000. However, bids by eligible employees will be considered for allocation up to Rs 200,000 initially. The offer structure includes an Employee Offer, subject to approval from the competent authority in accordance with applicable laws.
NHPC's share price decline reflects market reactions to the government's divestment move, emphasizing the impact of the offer for sale on investor sentiment.The development underscores the evolving dynamics in the equity market and the role of government actions in influencing stock performance. Investors will closely monitor the unfolding scenario and potential implications on NHPC's market valuation in the coming days.
