Govt's 3% Share Sale in NLC India Opens for Subscription

The government's offer for sale of up to 3% stake in NLC India got off to a smooth start on Tuesday, with strong participation from non-retail investors.

Non-retail investors bid for over 1.09 lakh shares, representing 0.44% of the 2.49 crore shares reserved for them, at an indicative price of ₹304.92 a share.

Bidding will continue until the close of market hours.

The government is selling about 4.16 crore shares or up to 3% stake in NLC India (Neyveli Lignite Corporation) at a floor price of ₹303/share.

The stake sale comprises a base offer size of 2%, and an additional 1% green shoe option in case of over-subscription.

If fully subscribed, the stake sale would fetch about ₹1,200 crore to the exchequer at the floor price.

The floor price represents a 9.73% discount over NLC India's closing price of ₹335.65 a share on the BSE on Monday.

Shares of NLC India were trading at ₹322.25, down 3.95% over Monday's close on BSE.

The Offer For Sale (OFS) opens for retail investors on June 10.

The government currently holds 72.20% in NLC India.

So far in the current fiscal, the government has mopped up ₹12,166 crore by selling minority stakes in PSUs. This include ₹5,542 crore from Coal India, ₹4,357 crore from NHPC and ₹2.266 crore from Central Bank of India.