The Indian government has announced plans to divest up to a 3% equity stake in NLC India Ltd. through an Offer for Sale (OFS) mechanism. This strategic move aims to reduce the government's holding in the prominent public sector enterprise.
OFS Details and Investor Categories
The Offer for Sale comprises a base issue size of 2% of NLC India's paid-up equity capital, with an additional 1% as a greenshoe option. The floor price for the equity shares has been set at Rs 212 per share.
- Non-Retail Investors: Bidding for non-retail investors commenced on June 7, 2026.
- Retail Investors: Retail investors will have the opportunity to place their bids starting June 10, 2026.
A notable incentive for retail investors is a 5% discount on the cut-off price, making the offer more attractive for individual participants in the market.
NLC India's Role
NLC India Limited, formerly known as Neyveli Lignite Corporation, is a Navratna public sector undertaking under the Ministry of Coal. The company is primarily engaged in lignite mining and power generation, playing a crucial role in India's energy sector. The government's decision to offload a portion of its stake is part of its broader disinvestment program.
“The government's decision aligns with its ongoing efforts to optimize its holdings in public sector undertakings while fostering broader public participation in these enterprises,” stated a representative familiar with the development.
The stake sale is expected to generate significant interest from both institutional and retail investors, given NLC India's established market presence and the attractive discount offered to retail participants.