iifl-logo-icon 1

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

India Eyes 10% Stake Sale in NLC India, Mazagon Dock, and IRFC to Boost FY24 Disinvestment Goals

5 Jan 2024 , 11:20 AM

India’s finance ministry is considering selling up to a 10 % stake in NLC India, Mazagon Dock Shipbuilders, and Indian Railway Finance Corporation through the offer for sale (OFS) route by March 31 to boost disinvestment proceeds for FY24.

The OFS is expected to be conducted from January to March, with a maximum of 10 % government stake to be sold in these public sector undertakings (PSUs). The government aims to space out the OFS transactions to ensure a smoother absorption by the market.

Some stake sales may be reserved for the next fiscal year’s disinvestment, according to a senior official. The official highlighted that while the actual implementation of OFS is not a problem, the disinvestment target is primarily reliant on strategic sales, which have been challenging in the pre-election year.

The government’s disinvestment target for FY24 is Rs 51,000 crore, with Rs 10,051.73 crore already garnered. A 10 % stake sale in NLC India, Mazagon Dock, and IRFC could potentially fetch the government up to Rs 21,200 crore, based on current market prices.

NLC India, engaged in lignite and coal production, has seen an 80 % increase in its shares over the past three months. Mazagon Dock and IRFC have also experienced stock gains of 8 % and 36 %, respectively, during the same period.

The government holds approximately 79 % of NLC’s equity shares, 85 % in Mazagon, and 86 % in IRFC.

Despite efforts, stake sales in fertiliser companies like Rashtriya Chemicals and Fertilizers, National Fertilizers, and Madras Fertilizers are unlikely due to a lack of investor interest. Investors have not shown enthusiasm during roadshows for the planned stake sales in these companies.

Stake sales in General Insurance Corporation of India and New India Assurance Company via OFS are also improbable due to lukewarm investor interest. The finance ministry had aimed to offer at least 10 % each in the two listed public sector insurance companies but faced a lack of traction from investors during preliminary discussions.

For feedback and suggestions, write to us at editorial@iifl.com

Related Tags

  • Government
  • IRFC
  • Mazagon dock
  • news
  • NLC India
  • stake
  • stake sale
sidebar mobile


Read More

Most Read News

Benchmark Indices Close on a Positive Note
14 Jun 2024|03:39 PM
Sensex and Nifty Surge
14 Jun 2024|01:47 PM
Read More
Knowledge Centerplus

Logo IIFL Customer Care Number
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

Knowledge Centerplus

Follow us on


2024, IIFL Securities Ltd. All Rights Reserved

  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.