NRG Energy Inc's stock plummeted 7.73% during intraday trading on Tuesday, reflecting significant selling pressure.

The sharp decline follows the pricing of a secondary public offering by affiliates of LS Power, a major shareholder, who are selling 14.3 million shares at $164 per share to raise approximately $2.35 billion. The offering price represents a discount to the stock's previous closing price, which has created concerns among investors about dilution and increased supply of shares in the market.

NRG Energy announced that it will not receive any proceeds from this sale, but separately plans to repurchase $300 million of its own stock from the selling shareholders at the same price per share. The offering was upsized from an initial plan and includes an option for underwriters to purchase additional shares, further contributing to the downward pressure on the stock price.