Govt to sell up to 3% stake in NLC India via OFS at ₹303/share floor price

The government on Monday announced the sale of up to a 3% stake in state-run NLC India Ltd through an offer for sale (OFS), setting a floor price of ₹303 per share, a discount of nearly 10% to the stock's closing price.

According to the Department of Investment and Public Asset Management (DIPAM), the OFS comprises a base offer of 2% of NLC India's equity share capital, with an option to sell an additional 1% stake under the green shoe mechanism in case of oversubscription.

The OFS will open for non-retail investors on June 9, while retail investors can bid on June 10.

DIPAM Secretary Arunish Chawla said in a post on X that the government has fixed the floor price at ₹303 per share.

Shares of NLC India ended Monday's trading session at ₹335.65 apiece on the BSE. The OFS floor price represents a discount of 9.73% to the closing market price.

NLC India, formerly known as Neyveli Lignite Corporation, is a public sector enterprise engaged in lignite mining and power generation. The Centre currently holds a majority stake in the company.

Announcing the stake sale, Chawla said NLC India continues to offer a long-term investment opportunity, citing the company's operational and financial performance, consistent returns and dividend payouts.

The proposed sale is part of the government's broader disinvestment programme aimed at raising resources through the dilution of minority stakes in public sector enterprises while retaining management control.

With the latest transaction, the Centre is set to further add to its disinvestment receipts for the current financial year.

So far in FY27, the government has raised ₹12,166 crore through minority stake sales in public sector undertakings. The proceeds include ₹5,542 crore from Coal India, ₹4,357 crore from NHPC and ₹2,266 crore from Central Bank of India.

An offer for sale allows promoters to divest shares through the stock exchange platform in a transparent manner. Retail investors are typically offered a separate bidding window and may receive certain incentives, subject to the terms of the issue.

NLC India shares have remained in focus amid the government's ongoing efforts to monetise investments in public sector companies and improve market participation in state-owned enterprises.