The Indian government has announced its intention to sell a 7% stake in the state-run lignite producer, NLC India, through an offer-for-sale (OFS) route. This includes a green shoe option of 2%. The government aims to raise approximately ₹2,058 crore, even if it sells the 7% stake at the floor price set for this sale.
The OFS will commence on Thursday for non-retail investors, while retail investors can participate in the bidding process on March 11. The Department of Investment and Public Asset Management (DIPAM) secretary, Tuhin Kanta Pandey, shared this information in a post on X (formerly Twitter).
The floor price for the offer has been set at ₹212 per equity share, representing a discount to the closing price of the company’s share, which was ₹226.7 apiece on the BSE on Wednesday.
The government, as the promoter, plans to sell up to 69,331,830 equity shares with a face value of ₹10 each, constituting 5% of the total paid-up equity share capital. This will be exclusively offered to non-retail investors on Thursday, as per a filing by the coal ministry with stock exchanges.
Additionally, the government proposes to sell 27,732,732 equity shares, representing an additional 2% stake. This portion will be available for retail investors and non-retail investors who choose to carry forward their un-allotted bids.
