State-owned hydropower producer NHPC ltd’s Rs2,700 crore share sale today managed to scrape through as oversubscription by institutional bidders made good for over 40 per cent of retail portion which remained unbid for. The sale of over 125.76 crore shares, or 11.36 per cent stake by the Government at a floor price of Rs21.75 was over-subscribed 1.65 times, according to stock exchange data. A day after institutional bidders poured in Rs3,410 crore to seek 1.58 times the shares reserved for them, retail investors bid for just 14.5 crore shares or 58 per cent of 25.15 crore shares reserved for them.
As per pre-bid condition, the unsubscribed retail portion is likely to be allocated to institutional investors. While non-retail or institutional investors had bid for 156.8 crore NHPC shares on day one of the offer for sale (OFS) on Wednesday, another 27.06 crore shares were bid for by them on Thursday. The Government sold over 125.76 crore shares, or 11.36 per cent stake, in NHPC at a floor price of Rs21.75. Of this, over 100.61 crore shares were offered to institutional investors.
At the floor price of Rs21.75, the sale of over 125.76 crore shares fetched Rs2,700 crore to the exchequer. A 5 per cent additional discount is being offered to retail investors, who are classified as those bidding for shares worth up to Rs2 lakh.