NLC India OFS: Govt To Sell Up To 3% Stake via OFS, Sets Floor Price At ₹303
NLC India OFS offers shares at a 12% discount to the market price. Here's everything investors need to know about the offer, bidding dates, previous OFS trends, and the company's nuclear power expansion plans.
Quick Summary
NLC India OFS: Government of India has launched an OFS in NLC India, offering up to 3% stake at a floor price of ₹303 per share, a 12% discount to the market price. The offer is part of the government's FY27 disinvestment programme and follows stake sales in NHPC, Coal India, and Central Bank of India.
NLC India OFS: Government of India has announced an Offer for Sale (OFS) in NLC India, offering up to 3% of its equity stake in the state-owned mining and power generation company. The stake sale includes a base offer of 2% equity and an additional 1% green shoe option in case of strong investor demand.
Floor price for NLC OFS has been fixed at ₹303 per share, which is around 12% discount to NLC India's closing price of ₹335.65 on BSE on June 8. NLC OFS will open for non-retail investors on June 9, while retail investors can bid on June 10.
NLC India OFS is part of the government's ongoing disinvestment programme aimed at increasing public shareholding and raising resources through stake sales in public sector enterprises.
The transaction follows OFSs in NHPC, Coal India and Central Bank of India earlier this financial year.
NLC India OFS Details
NLC Floor price of ₹303 per share is lower than NLC India's closing market price of ₹335.65 on BSE.
|
Particulars |
Details |
|
Company |
NLC India |
|
OFS Size |
Up to 3% Equity Stake |
|
Base Offer |
2% |
|
Green Shoe Option |
1% |
|
Floor Price |
₹303 per share |
|
Discount to Market Price |
Around 12% |
|
Non-Retail Bidding |
June 9 |
|
Retail Bidding |
June 10 |
NLC India Expands Into Nuclear Power
The company operates across lignite mining, thermal power generation and renewable energy projects. Over the years, NLC India has expanded its power generation capacity and diversified its energy portfolio.
Last month, NLC India signed a Memorandum of Understanding (MoU) with Nuclear Power Corporation of India Limited (NPCIL) to jointly develop nuclear power projects in India.
Under the agreement, both companies will work on developing indigenous 700 MW Pressurised Heavy Water Reactor (PHWR)-based nuclear power projects. They will also explore opportunities in other nuclear reactor technologies based on mutually agreed terms.
Government's FY27 Disinvestment Progress
NLC India OFS comes after a series of stake sales undertaken by the government in FY27. Earlier this year:
-
NHPC OFS helped the government raise around ₹4,300 crore.
-
Coal India stake sale generated ₹5,542 crore.
-
Central Bank of India divestment raised ₹2,266 crore.
With recent stake sales, the government's disinvestment proceeds have reached ₹7,808 crore in FY27 so far.
In the Union Budget FY27, the government projected ₹80,000 crore from disinvestment and asset monetisation, higher than the revised estimate of ₹33,837 crore for FY26.
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What Happened on Previous OFS Announcements?
Stocks often see short-term selling pressure after an OFS announcement, as investors prefer bidding through the discounted OFS route rather than buying shares in the secondary market
|
Company |
OFS Year |
Floor Price Discount |
Market Reaction |
|
Coal India |
2026 |
~10% |
Shares fell around 6–7% after the OFS announcement as investors shifted to the discounted offer. |
|
Central Bank of India |
2026 |
Discounted OFS Price |
Shares declined nearly 6% on the first day due to selling pressure |
|
NLC India |
2024 |
~6% |
Strong institutional demand led to nearly 3x subscription in the non-retail category on Day 1. |