NHPC slumps as OFS begins

NHPC is currently the top loser on the BSE, down almost 6% at Rs.21.75. It has closed yesterday at Rs.23.05 and volumes have jumped up almost 11 times.

The stock price has slumped post the Govt beginning sale of its 11.36% stake sale and the price has fallen below the floor price of Rs.21.75 for the offer for sale, going down to 21.50 intra day.

The offer for sale for institutional investors closes today at 3.30PM. Retail investors sale will close tomorrow and they will be allotted shares at a 5% discount to the cut-off price, which does not really lave them with much profit going by the current rate.

This is the first Offer for Sale from the Govt this fiscal. It currently holds 85.96% stake in NHPC and post this OFS, its stake will come down to 74.6%, meeting SEBI’s maximum promoter shareholding threshold of 75%.