Government May Sale Up to 7% Stake in NLC India Via OFS

7 Mar 2024 , 10:27 AM

On Wednesday, the government announced intentions to sell up to 7% of its shareholding in NLC India through an offer for sale, with a minimum price of ₹212 per share.

The floor price is more than 6% below the current market price of the stock. On Wednesday, shares of the PSU major fell 0.1% on the National Stock Exchange to ₹226.

The OFS will be available for subscription to institutional investors on Friday, non-retail investors on Thursday, and retail investors on March 11, according to a stock market filing.

The total number of equity shares offered is 6,93,31,830, representing a 5% interest, with a face value of ₹10 apiece. In the event of an oversubscription, the government will offer an extra 2,77,32,732 shares, representing a 2% stake.

As at the end of December, the government held 79.2% of NLC India. However, SEBI laws enable promoters/promoter organisations to own up to 75% of a listed business.

In the Offer for Sale (OFS), mutual funds and insurance companies are allocated a minimum of 25% of the offering, with an additional 10% reserved for retail investors. The brokers overseeing the transaction are ICICI Securities and DAM Capital Advisors.

NLC India stock has been one of the best-performing in the PSU industry, returning over 177% in the past year.

NLC India recorded a consolidated net profit of ₹250.4 Crore in the December quarter, up from a loss of ₹407 Crore the previous year, but sales declined 14% to ₹3,164 Crore.

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