 "NHPC begins stake sale; stock down over 5%")
NHPC has dipped nearly 7% to Rs 21.50 on the BSE in early morning trade after the government decided to divest 11.36% stake in the power producer company through an offer-for-sale issue on Wednesday.
The government proposed to sell up to 1258 million shares at a floor price of Rs 21.75 a share, a discount of 5.64% to Tuesday's closing price of Rs 23.05 on BSE. The stake sale would fetch the government about Rs 2,700 crore.
Retail investors will get 5% discount to cut-off price in the share sale. As much as 20% of the offer size would be reserved for retail investors.
The government holds 85.96% in NHPC and selling 11.36% would help it comply with minimum public shareholding norms of 75% sovereign holding in state-owned companies.
At 09:55 am, the stock was down 6% at Rs 21.65 on back of heavy volumes. The trading volumes on the counter surged an over five-fold with a combined 10.61 million shares changed hands on the BSE and NSE so far.
The government proposed to sell up to 1258 million shares at a floor price of Rs 21.75 a share, a discount of 5.64% to Tuesday's closing price of Rs 23.05 on BSE. The stake sale would fetch the government about Rs 2,700 crore.
Retail investors will get 5% discount to cut-off price in the share sale. As much as 20% of the offer size would be reserved for retail investors.
The government holds 85.96% in NHPC and selling 11.36% would help it comply with minimum public shareholding norms of 75% sovereign holding in state-owned companies.
At 09:55 am, the stock was down 6% at Rs 21.65 on back of heavy volumes. The trading volumes on the counter surged an over five-fold with a combined 10.61 million shares changed hands on the BSE and NSE so far.