Indian govt to sell up to 3.5% stake in NHPC

(Reuters) – The Indian government will sell up to 3.5% stake in state-run NHPC through an offer for sale, the company said in an exchange filing on Wednesday.

The proposed stake sale will see the government divest 2.5% of the renewable energy major’s stock with an option to sell an additional 1%.

The floor price for the sale has been fixed at 66 rupees per share, a nearly 10% discount on the stock’s closing price on Wednesday.

The sale, part of a larger divestment drive, will help the government raise about 23.2 billion Indian rupees ($279.04 million).

The Indian government has raised about 100.5 billion rupees through stake sales this financial year, only a fifth of its 2023-24 target of 510 billion rupees.

The government is set to miss its divestment target for the fifth straight year, Reuters reported in November.

($1 = 83.1430 Indian rupees)

(Reporting by Nikunj Ohri and Utkarsh Shetti; Editing by Maju Samuel and Tasim Zahid)