Govt clears 11.36% stake sale in NHPC, may get Rs 2,800 cr

Stake sale will help the company comply with the minimum 25% public shareholding norm of Sebi

Government today cleared 11.36% stake sale in NHPC, that could fetch over Rs 2,800 crore to the exchequer.

The Cabinet Committee on Economic Affairs (CCEA) has cleared sale of government's 11.36% in NHPC through an Offer For Sale (OFS), sources said.

At the current market price of Rs 22.40 a piece, sale of 11.36% or 125.76 crore shares would fetch over Rs 2,800 crore to the exchequer.

Government holds 85.96% stake in NHPC. The stake sale would help the company comply with the minimum 25% public shareholding norm of market regulator Sebi.

The disinvestment department has already selected three merchant bankers -- Edelweiss Financial, IDFC Capital and HSBC Securities-- for managing the NHPC stake sale.

In the current fiscal, the government plans to mop up Rs 43,425 crore from selling its stakes in PSUs.