NHPC shares gained nearly 5% in morning trade on June 3 after the government's Offer for Sale (OFS) attracted strong investor interest, prompting the Centre to exercise the entire green shoe option and increase the total stake sale size to 6%.
At 10:25 AM, NHPC shares were trading near the day's high after witnessing heavy buying activity. The stock touched an intraday high of ₹75.60 compared to the previous close of ₹72.29, reflecting robust investor sentiment toward the state-owned hydropower company.
The positive momentum came after the Department of Investment and Public Asset Management (DIPAM) confirmed that the OFS received an enthusiastic response from investors. DIPAM Secretary Arunish Chawla stated that share allocation would be carried out on a price-priority basis, while the government decided to exercise the full green shoe option due to overwhelming demand.
The government had initially launched the OFS with a base issue size of 3%, along with an option to sell an additional 3% stake through the green shoe mechanism. The floor price for the OFS was fixed at ₹71 per share, offering investors a discount compared to the prevailing market price.
Market participants highlighted several indicators pointing toward strong institutional interest in the OFS. One key indicator was the sharp rise in NHPC's Securities Lending and Borrowing Mechanism (SLBM) rate, which reportedly surged to around ₹3.5 per share ahead of the stake sale. Such movements are often viewed as a sign of heightened market activity surrounding major corporate events.
NHPC share price Performance (as of 10:25 AM, June 3)
- Current Trend: Up nearly 5%
- Day's Low: ₹71.82
- Day's High: ₹75.60
- Opening Price: ₹75.56
- Previous Close: ₹72.29
- 52-Week Low: ₹71.62
- 52-Week High: ₹92.34
- Live Volume: 8,56,91,030 shares
The sharp rise in trading volumes alongside the price rally indicates strong participation from both institutional and retail investors following the successful OFS subscription.