Govt to sell up to 7% stake in NLC India via OFS to raise up to Rs 2,100 cr

NLC India is a Navratna company under the Ministry of Coal

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The government will sell up to 7 percent stake in NLC India through an offer for sale (OFS) to raise up to Rs 2,000 crore-Rs 2,100 crore. The official confirmation came hours after CNBC TV-18 newsbreak.

The government is looking to sell up to 5 percent stake in the state-owned firm with an option to exercise greenshoe option to sell an additional 2 percent stake.

The base offer will comprise the sale of around 6.93 crore equity shares, whereas, the greenshoe option will comprise 2.77 crore shares.

"Offer for sale in NLC India Limited opens tomorrow for non-retail investors. Retail investors can bid on Monday, 11th March. The government will divest 7% equity including Green Shoe option of 2%," Secretary, DIPAM posted on social media.

The floor price for the OFS has been fixed at Rs 212 per share, NLC India said in a regulatory filing. ICICI Securities and DAM Capital Advisors will be the brokers for the deal.

As per shareholding pattern of the company, the central government holds 79.2 percent stake in the company as of December 2023.  SEBI allows promoter of a company to have maximum of 75 percent stake in a listed company.

On Wednesday, NLC's scrip on BSE closed trading nearly flat at Rs 226. The 52-week low of the stock is Rs 69.7 and 52-week high is Rs 293.75.

NLC India is a Navratna company under the Ministry of Coal. The company’s core business is mining and power generation.

Moneycontrol had reported in January that the government is likely to sell stake in NLC to add to its disinvestment proceedings for FY24.

Last month, NLC India reported a consolidated net profit of Rs 250.4 crore for Q3FY24 as against a loss of Rs 406.7 crore a year ago, but its consolidated revenue from operations fell 14 percent to Rs 3,164.4 crore. For the reporting period, EBITDA fell 33.5 percent to Rs 904.7 crore from Rs 1,359.7 crore in the previous fiscal.