Indian govt to sell up to 3.5% stake in NHPC

Credit: REUTERS/Vivek Prakash

Adds details on the stake sale in paragraphs 2 , 3, background on govt divestment drive

Jan 17 (Reuters) - The Indian government will sell up to 3.5% stake in state-run NHPC NHPC.NS 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)

((UtkarshUmesh.Shetti@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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