The government’s 11.36 per cent stake sale in NHPC for retail investors was subscribed 57.98 per cent with bids worth 14,58,35,981 shares.

However, the NHPC stock slipped below the floor price of Rs 21.75 in a weak market and ended lower by 1.86 per cent at Rs 21.15 on the BSE.

Of the stake sale of over 125.76 crore shares, or 11.36 per cent stake, at a floor price of Rs 21.75, over 100.61 crore shares were offered to institutional investors yesterday and the rest over 25.15 crore shares were offered to retail investors.

A five per cent additional discount was being offered to retail investors, who were classified as those bidding for shares worth up to Rs 2 lakh.

At the floor price of Rs 21.75, the sale of over 125.76 crore shares would fetch Rs 2,700 crore to the exchequer.

Institutional investors, including FIIs and insurance companies, kick-started the NHPC stake sale yesterday, with the portion offered to them getting over-subscribed by 1.58 times. Total bids worth Rs 3,410 crore came in from these buyers.

NHPC is the first disinvestment by the government in the current fiscal, which has set a target of Rs 56,500 crore through selling shares and privatisation of public sector undertakings (PSUs).

The government’s share sale will bring down its shareholding in NHPC to 74.6 per cent, from 85.96 per cent.

This will help the company comply with the minimum 25 per cent free-float requirement.

NHPC, under the administrative control of the Power Ministry, generates power through conventional as well as non-conventional sources.

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