New Delhi, April 27 (IANS) The government's first disinvestment of the 2016-17 fiscal got underway on Wednesday with its 11.36 percent stake sale in hydroelectricity generator NHPC as the portion reserved for institutional investors was oversubscribed within three hours of the opening of trade.

Over 100.61 crore shares were on offer on Wednesday, while the remaining, over 25.15 crore, will be sold to retail investors on Thursday.

They will be allocated shares at 5 percent discount on the cut-off price.

At a floor price of Rs.21.75, the sale of over 125.76 crore equity shares is expected to yield around Rs.2,700 crore to the exchequer. The floor price was at a discount of 5.6 percent over Tuesday's closing price.

National Hydroelectric Power Corporation (NHPC) is the first public sector undertaking to go for stake sale in the current fiscal, representing 11.36 percent of the total paid-up equity share capital.

Post the sale, the government stake in the NHPC will come down to 75 percent.

NHPC stock closed on Wednesday at Rs.21.55 per share, down 1.50 points or 6.51 percent, compared with its previous close on the Bombay Stock Exchange.

The government has set a target of collecting Rs.56,500 crore from disinvestments in the current financial year.

Of this, Rs.30,000 crore is to come from selling stakes in PSUs and the balance Rs.26,500 crore from strategic stake sale that involves divesting majority shareholding control.