The government on Tuesday decided to exercise the green shoe option in the 6 per cent stake sale in the state-owned NHPC through Offer for Sale (OFS), following an overwhelming response from investors on the first day of subscription.The OFS received an encouraging response from investors and was oversubscribed 3.47 times on the first day."Offer for Sale in NHPC Limited received enthusiastic response from investors and was oversubscribed 3.47 times on the first day. Allocation will be on a price priority basis. The government has decided to exercise the entire green shoe option. Retail investors and employees get to bid on 3rd June 2026," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.The government on Monday announced to sell up to 6 per cent stake in NHPC via OFS at a floor price of Rs 71 per share.The OFS includes a base offer of 3 per cent of the government's equity in NHPC and an additional 3 per cent green shoe option.The floor price of Rs 71 per share is at an 8 per cent discount over Monday's closing price of Rs 77.19 on the BSE. On Monday, the stock ended 2.07 per cent lower than Friday's close.The OFS opened for non-retail investors on Tuesday, while for retail investors it will open on Wednesday.Sale of over 60.27 crore shares representing a 6 per cent stake at a floor price of Rs 71 a share would fetch about Rs 4,200 crore to the exchequer.This will be the third OFS of a public sector company in the current fiscal year.Last week, the government sold a 2 per cent stake in Coal India via OFS to mop up Rs 5,542 crore. In May, it sold 8.08 per cent in the Central Bank of India to raise Rs 2,266 crore. Together, the disinvestment proceeds so far in FY27 stand at Rs 7,808 crore.The FY27 Budget has estimated a mop-up of Rs 80,000 crore through disinvestment and asset monetisation, more than double the Rs 33,837 crore as per the Revised Estimates for FY26.