Shares of NLC India Ltd are in focus today as the government's Offer for Sale (OFS) for the lignite mining and power generation company has seen a strong response, particularly from non-retail investors. The non-retail portion of the OFS was subscribed 5.22 times on Day 1, prompting the government to exercise its oversubscription option.
Government Exercises Oversubscription Option
On Tuesday, the non-retail segment received bids for 13,03,39,482 shares against a quota size of 2,49,59,458 shares. The indicative price for these bids stood at Rs 319.06 per share, significantly higher than the floor price of Rs 303 per share, which represented a 10 percent discount to NLC India's closing price on Monday.
Following this robust demand, NLC India informed the stock exchanges of the government's decision to exercise the oversubscription option. This adds up to 1,38,66,366 equity shares (representing 1 percent of the total issued and paid-up equity share capital) to the base offer size of 2,77,32,732 equity shares (2 percent of capital).
Retail Bidding Commences Today
Consequently, the total offer size for the NLC India OFS will now be 4,15,99,098 shares, which constitutes 3 percent of the company's total paid-up equity share capital as of March 31, 2026. Retail investors will have the opportunity to bid for the issue starting today, Wednesday, June 10, 2026.
A total of 41,59,911 equity shares, representing 10 percent of the total offer, will be available for the retail category. Additionally, up to 25,000 equity shares may be offered to eligible employees of NLC India, in accordance with the terms and conditions outlined in the OFS guidelines. The settlement for these transactions will proceed as per existing secondary market rules.
This development is expected to keep NLC India shares under close observation in the market as investors react to the successful initial phase of the offer and the opening of the retail bidding window.