The government will divest up to a 3% stake in state-owned NLC India Ltd through an offer for sale (OFS), with the floor price set at Rs 303 per share, nearly 10% below the stock's closing price on Monday.
OFS Details
The OFS for non-retail investors will open on Tuesday, while retail investors can bid on June 10, according to PTI. The Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla announced on X: "Government of India announces OFS in NLC India Limited (formerly Neyveli Lignite Corporation) with a base offer of 2 per cent of its equity and an additional 1 per cent Green Shoe Option in case of oversubscription."
The floor price of Rs 303 per share represents a discount of 9.73% to NLC India's closing price of Rs 335.65 on the BSE on Monday.
Disinvestment Programme
The stake sale is part of the Centre's ongoing disinvestment programme aimed at raising resources through minority stake sales in public sector enterprises. Chawla said: "With strong operational and financial performance, consistent returns and attractive dividends, NLC continues to offer a compelling long-term investment opportunity."
Funds Raised So Far
The government has already raised Rs 12,166 crore through PSU stake sales in the current financial year. These include:
- Rs 5,542 crore from Coal India
- Rs 4,357 crore from NHPC
- Rs 2,266 crore from Central Bank of India
The OFS in NLC India is expected to further contribute to the government's disinvestment target for the fiscal year.
