NHPC shares extended their winning streak on Monday, gaining 1.2% to hit an intraday high of Rs 84.69 on the BSE. This represents the fifth consecutive trading session of gains for the power generation company, with the stock surging over 10% cumulatively in the past five days.

Fundraising Plan Drives Investor Interest

The stock's momentum accelerated following a company announcement made on January 2, where NHPC informed the BSE that its Board of Directors will meet on January 8. The board will consider and approve a proposal to raise funds of up to Rs 2,000 crore through the issuance of bonds.

Investors appear to be reacting positively to the potential capital-raising move, which could strengthen the company's financial position and support its ongoing projects.

Valuation and Technical Analysis

From a valuation perspective, NHPC is currently trading at moderate levels relative to its fundamentals and recent performance:

Technical Indicators

The stock's technical indicators present a mixed picture. The 14-day Relative Strength Index (RSI) stands at 70.50, which is above the 70 threshold generally considered overbought territory. This suggests the stock may be due for a short-term pullback or consolidation.

However, moving averages point to a bullish trend, with NHPC trading above all eight key simple moving averages (SMAs), reflecting consistent upward momentum across both short- and long-term trends.

Institutional Interest Growing

On the shareholding front, foreign institutional investors (FIIs) demonstrated growing confidence in the stock during the September quarter, increasing their stake from 9.31% to 10.05%. This uptick in overseas investor interest indicates positive sentiment among institutional players regarding the company's prospects.

State-owned hydro power giant NHPC Ltd announced on Friday (January 2) its plans to raise ₹2,000 crore through the issuance of unsecured, redeemable, taxable, non-convertible, non-cumulative bonds in one or more tranches via private placement. The company has scheduled a board of directors meeting on Thursday, January 8, 2026, to consider and approve the proposal for the perusal of the General Information Document (GID) and Key Information Document (KID) for the proposed bond issuance.

Bond Issuance Details

The fundraising initiative involves the issuance of bonds through private placement, providing NHPC with capital for its operational and expansion requirements. The bonds will be structured as unsecured, redeemable, taxable, non-convertible, and non-cumulative instruments, offering flexibility in the issuance process through multiple tranches.

Strong Second Quarter Performance

NHPC reported robust financial performance for the July-September quarter of FY26, demonstrating strong operational efficiency and growth momentum. The company's consolidated net profit rose significantly, supported by revenue growth and improved operational metrics.

Operational Excellence and Market Position

The company's EBITDA margins improved to 60.20% from 59.10% in the year-ago quarter, reflecting disciplined cost management and efficient operations. This margin expansion demonstrates NHPC's ability to optimize its operational performance while maintaining growth trajectory.

Faridabad-based NHPC operates under the Ministry of Power and holds the distinction of being India's largest hydropower development company. The company has diversified its portfolio beyond hydropower to include presence in solar and wind energy development, positioning itself strategically in the renewable energy sector.

Market Response

Shares of NHPC Ltd ended the trading session at ₹83.70, registering a gain of ₹5.20 or 4.14% on the BSE. The positive market response reflects investor confidence in the company's fundraising plans and strong quarterly performance.