Putting its disinvestment programme for the 2016-17 fiscal on the fast track, the government announced on Tuesday that it will sell 11.36 per cent stake in NHPC to raise close to ₹ 2,800 crore.

The stake sale will be through the offer for sale mechanism and non-retail investors will be eligible to place bids on April 27 while retail investors will be eligible to bid on April 28.

The floor price for the offer for sale has been set at ₹ 21.75 per share and on offer will be 125.76 crore shares. On Tuesday, public sector hydro power producer NHPC’s shares closed 1.32 per cent higher on the BSE at ₹ 23.05.

The government currently holds 85.96 per cent stake in NHPC.

By conducting the offer for sale in April, the government will commence the disinvestment programme for the 2016-17 fiscal in the first month of the fiscal itself. For the full fiscal, the government aims to raise ₹ 35,000 crore from the minority stake sales in public sector units.

BusinessLine had reported on April 5 that the Department of Investment and Public Asset Management (DIPAM or former Department of Disinvestment) has decided carry out stake sales throughout the year, instead of waiting for markets to improve.

Meanwhile, in another development, DIPAM sought proposals to appoint merchant bankers for conducting a 10 per cent stake sale in oil and gas exploration and production company Oil India Ltd.

According to DIPAM’s request for proposals, interested merchant bankers would have to submit their proposals latest by May 18.

On Tuesday, Oil India’s shares closed 0.54 per cent higher on the BSE at ₹ 318.60. As per Tuesday’s share price, a 10 per cent stake sale in Oil India will fetch the government ₹ 1,915 crore.

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