18-Jan-2024
2 mins read
NHPC shares witnessed a massive sell-off and opened a 5% gap down on January 18 session. The reason for the sudden selling of NHPC Limited stock is ‘anticipated’ due to recent news regarding divestment.
The government has decided to sell out a 3.5% stake in its PSU unit NHPC as an Offer for Sale (OFS). The floor price was decided at Rs 66 per share, which is a discount of 9% from the January 17 closing price.
NHPC: Regulatory Filing
Yesterday, on exchange filing, management informed that the Offer for Sale of Hydropower company NHPC will open on January 18, 2024, for institutional investors. The retail investors category can open the bid on Friday, January 19.
In the recent OFS, the Indian government will sell over 25 crore equity shares in NHPC at a price of Rs 66 per share. The reports estimate that this OFS will collect approximately Rs 2,300 crore.
NHPC Shares Past Performance
The public sector company NHPC Limited shares fall to match the discount price, which stands at Rs 66. However, the major concern for the long-term investors is whether the downfall will take a halt near Rs 66.00 or not.
Previously, the share price of NHPC performed well and rewarded its investors in the long run. The revenue from the last three quarters is increasing, and net income remains positive.
The company is continuously working toward growth and business expansion. The OFS will help the government fetch Rs 2,300, which might be used for expansion. However, management did not mention how the government will use the OFS funds.
NHPC Peer Companies Reaction
The other NHPC peer companies like Tata Power, JSW Energy, and Torrent Power have also displayed a mild cut from yesterday’s closing price.
In the September quarter, NHPC reported a consolidated profit of Rs 1,546 crore. The profit rose by 0.7% YoY over the previous fiscal.
The revenue from operations also increased by 11.6% year-on-year to Rs 2,931.3 crore during the reporting quarter. NHPC scheduled the December quarter earnings on February 9, 2024.