Nifty Tips: NEW DELHI: Shares of NHPCBSE -5.64 % took a beating on Wednesday after the government kicked off selling of 11.36% stake in the hydro-power generation company via the offer for sale (OFS) route.

The issue has been opened for non-retail investors. Non-Retail investors and Retail Investors, who choose to carry forward their bids, would be allowed to bid on Thu as per the recently-tweaked Sebi norms.

In a regulatory filing, NHPC on Tuesday said, “The President of India, acting through and exhibited by the ministry of power, government of India, has submitted to BSE a copy of notice of cite for sale up to 1,25,76,27,941 equity shares of the face value of Rs 10 each of NHPC.”

The floor price at Rs 21.75/share for the OFS was at 5.63% to Tuesday’s closing price of Rs 23.05 on BSE.

Following the development, the stock on Wed slumped 6.72% to hit a low of Rs 21.50 on the exchange, below the floor price. A total of 20% of issue size has been reserved for retail investors. Retail Investors will be allocated shares at a discount of 5% to the cut off cost.

Professional have been cautious on the OFS.

“One should not buy stocks due to the seller is offering a discount to the market cost. I would rather wait for the company to show better action or a solid growth roadmap and buy the stock at Rupees 25 if there is potential of higher return,” said Mehraboon Irani of Nirmal Bang Securities told the RV.