The Government of India will divest up to a 3% stake in NLC India Limited via an Offer for Sale (OFS). The floor price is set at Rs 303 per share. The offer opens on June 9 for non-retail and June 10 for retail investors.
The Government of India on Monday announced an Offer for Sale (OFS) in state-run NLC India Limited, under which it will divest up to 3 per cent of its equity stake in the company.
Offer Details and Pricing
Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla shared the details in a post on social media platform X, stating that the OFS comprises a base offer of 2 per cent equity and an additional 1 per cent Green Shoe Option, which may be exercised in the event of oversubscription. The floor price for the share sale has been fixed at Rs 303 per share.
The offer will open for non-retail investors on June 9, while retail investors can bid on June 10.
According to the offer structure, the government will initially sell around 2.78 crore shares, representing 2 per cent of the company's paid-up equity capital. In case of strong investor demand, an additional 1.39 crore shares, equivalent to 1 per cent stake, may be offered under the Green Shoe Option, taking the total divestment to 3 per cent.
"The Government of India announces OFS in NLC India Limited with a base offer of 2% of its equity and an additional 1% Green Shoe Option in case of oversubscription. Floor price fixed at Rs 303 per share," Chawla said in the post on 'X'.
Company Profile and Rationale
Highlighting the company's fundamentals, he said NLC India continues to offer a compelling long-term investment opportunity backed by strong operational and financial performance, consistent returns and attractive dividend payouts.
NLC India, a Navratna public sector enterprise under the Ministry of Coal, is engaged in lignite mining and power generation and has expanded its presence in renewable energy projects in recent years.
Part of Broader Disinvestment Programme
The OFS is part of the government's broader disinvestment programme aimed at unlocking value and enhancing public participation in central public sector enterprises.
The stake sale follows a series of recent government divestment transactions in public sector companies like Coal India, Central Bank of India and NHPC as part of its asset monetisation and disinvestment roadmap for the current financial year. Disinvestment is LIC and IDBI Bank is also in the pipeline. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)