NLC India slips as government launches Rs 1,260-crore OFS at discount

NLC India fell 3.40% to Rs 324.25 after the Government of India launched an offer for sale (OFS) to divest up to a 3% stake in the state-run mining and power company.

The President of India, acting through the Ministry of Coal, is offering up to 2.77 crore equity shares, representing 2% of NLC India's paid-up equity capital, as the base offer. The government has also retained an oversubscription option to sell an additional 1.39 crore shares, equivalent to another 1% stake.

If the greenshoe option is fully exercised, the total offer size will rise to 4.16 crore shares, representing 3% of the company's equity capital.

At the floor price of Rs 303 per share, the base offer is valued at about Rs 840 crore. Including the oversubscription option, the total issue size could increase to nearly Rs 1,260 crore.

The floor price has been set at Rs 303 per share, a discount of 9.73% to the previous closing price of Rs 335.65 on the BSE.

The OFS opened for non-retail investors on 9 June 2026 and will open for retail investors and eligible employees on 10 June 2026. Non-retail investors may also carry forward their unallotted bids to the second day and revise them in accordance with SEBI guidelines.

According to BSE data, the offer received bids for 58.50 lakh shares as of 12.25 IST on the first day, translating into 23.44% subscription of the base non-retail portion of 2.49 crore shares. The indicative clearing price stood at Rs 304.50 per share.

The government has reserved 27.73 lakh shares for retail investors, with an additional oversubscription option of 13.87 lakh shares. The non-retail category has been allocated 2.49 crore shares under the base offer, with an option to increase this by 1.24 crore shares if the greenshoe option is exercised.

NLC India has also earmarked up to 25,000 shares for eligible employees. Employees can place bids worth up to Rs 5 lakh, although allocations will initially be considered up to Rs 2 lakh per employee.

NLC India is a Navratna public sector enterprise engaged in lignite mining and power generation. The Government of India held 72.20% in the company as on March 2026.

On a consolidated basis, NLC India's net profit surged 189.12% to Rs 1393.46 crore while net sales rose 31.45% to Rs 5042.46 crore in Q4 March 2026 over Q4 March 2025.

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