New Delhi: The government on Tuesday opened its Offer for Sale (OFS) for NLC India Ltd, offering up to 3 percent stake in the state-owned company. The stake sale is part of the Centre’s ongoing disinvestment programme aimed at raising funds through the sale of minority holdings in public sector companies.
The offer received a steady response from non-retail investors on the first day of bidding.
Non-Retail Investors Begin Bidding
According to exchange data, non-retail investors placed bids for more than 1.09 lakh shares during the day. This represented about 0.44 percent of the 2.49 crore shares reserved for institutional and other non-retail investors.
Bidding from non-retail investors will continue until the close of market hours on Tuesday.
Retail investors will be able to participate in the OFS on June 10.
Details Of The Offer
The government is selling around 4.16 crore shares, equivalent to up to 3 percent of NLC India’s equity.
The OFS consists of a base offer of 2 percent stake and an additional 1 percent green shoe option that can be exercised if investor demand remains strong.
The floor price has been fixed at Rs 303 per share.
At this price, the government could raise approximately Rs 1,200 crore if the entire offer is subscribed.
Discount Offered To Investors
The floor price is about 9.73 percent lower than NLC India’s previous closing price of Rs 335.65 per share on the BSE.
Following the announcement, NLC India shares witnessed some pressure in the market. The stock was trading at Rs 322.25, down 3.95 percent from Monday’s closing level.
Government's Disinvestment Push Continues
The government currently holds 72.20 percent stake in NLC India.
With this offer, the Centre continues its strategy of monetising holdings in public sector enterprises.
So far in the current financial year, the government has raised Rs 12,166 crore through stake sales in PSUs. This includes Rs 5,542 crore from Coal India, Rs 4,357 crore from NHPC and Rs 2,266 crore from Central Bank of India.
The NLC India OFS is expected to further support the government's disinvestment and revenue mobilisation efforts.
