Navratna PSU To Sell Up To 3% Stake Through OFS; Government To Raise Upto Rs 1,263 Crore

On Tuesday, Indian equity benchmarks traded higher, with the benchmark Nifty 50 index rising 0.13 per cent to 23,153.50. Despite the positive market sentiment, NLC India share price declined 3.74 per cent to Rs 323.20 after the Government of India announced an Offer for Sale (OFS) to divest up to a 3 per cent stake in the Navratna PSU.

Government Launches OFS In NLC India

The Government of India, acting through the Ministry of Coal, has proposed to sell up to 2.00 per cent of its stake in NLC India through an Offer for Sale (OFS). The base offer comprises 2,77,52,732 equity shares.

The government has also retained a greenshoe option to sell an additional 1.00 per cent stake, equivalent to 1,38,66,366 equity shares. If the greenshoe option is fully exercised, the total offer size will increase to 3.00 per cent of the company's equity share capital.

The government has fixed the floor price for the OFS at Rs 303 per share, representing a discount to the prevailing market price. Based on the floor price, the government stands to raise approximately Rs 842 crore through the base offer comprising 2,77,52,732 equity shares. If the greenshoe option for an additional 1,38,66,366 equity shares is fully exercised, the total issue size could increase to around Rs 1,263 crore.

Floor Price Fixed At Rs 303 Per Share

The floor price for the OFS has been fixed at Rs 303 per share, representing a discount to the prevailing market price.

Based on the floor price, the government is expected to raise approximately Rs 842 crore through the base offer. If the greenshoe option is exercised in full, the total issue size could increase to around Rs 1,263 crore.

The OFS will open for non-retail investors on June 9, 2026, while retail investors and eligible employees will be able to participate on June 10, 2026.

Part Of Government's Disinvestment Programme

The stake sale forms part of the government's ongoing disinvestment programme. The transaction will be conducted through a separate window mechanism on the BSE and NSE in accordance with SEBI's OFS framework.

Market participants will closely monitor subscription levels, particularly given the inclusion of the greenshoe option, which allows the government to sell an additional stake in the event of strong investor demand.

About NLC India 

NLC India Ltd is a Navratna Central Public Sector Enterprise under the Ministry of Coal engaged in lignite mining, coal mining, thermal power generation and renewable energy development. The company operates integrated mining and power assets across multiple states and has been expanding its renewable energy portfolio through Solar and other clean energy projects.

Over the years, NLC India has diversified beyond its traditional lignite mining business and continues to focus on strengthening its position in India's evolving energy landscape through investments in power generation and renewable energy capacity.

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Disclaimer: The article is for informational purposes only and not investment advice.