Mumbai: Analysts say NHPC's offer for sale (OFS) presents a mix of near-term pressure and long-term opportunity, making it more suitable for patient investors than short-term traders."Retail investors should look past the immediate price volatility; this is a tactical entry point into India's premier green utility franchise." said Vaqarjaved Khan, senior analyst - fundamental at Angel One.The initial arbitrage opportunity has already narrowed as markets factored in the equity dilution, said Khan. He expects limited sharp upside in the near term due to supply overhang and long project gestation cycles, but sees NHPC as a steady compounding story driven by its transition into a diversified renewable energy player spanning hydro, pumped storage and solar.The government on Monday announced it will divest up to a 6% stake in NHPC through the OFS route, comprising a 3% base offer and a greenshoe option of an additional 3% in case of strong demand. The issue opened for non-retail investors on Tuesday and will open for retail investors on Wednesday.On Tuesday, the first day of the issue witnessed strong demand from non-retail investors which was subscribed 3.5 times, with bids for over 94.2 crore shares against 27.1 crore shares on offer.The floor price was set at ₹71 per share, a discount of about 7.9% or ₹6.1 to Monday's closing price of ₹77.1 on the NSE. The stock fell 6.8% to close at ₹71.9 on Tuesday."NHPC OFS comes at a time when energy security has come back into sharp focus globally," said Ankit Garg, fund manager at Wealthy Nivesh PMS. "Geopolitical tensions in West Asia, including the Iran-Israel conflict, have highlighted the risks of fossil fuel dependence, which is likely to accelerate investments in domestic clean energy infrastructure."As of March-end, the government held a 67.4% stake in NHPC. The stake sale is part of its broader disinvestment strategy to raise resources from public sector enterprises.Last week, the government divested part of its stake in Coal India through a similar route at a floor price of ₹412 per share last week. The government held over 63% in the PSU miner as of March-end.