The government is selling its 3 per cent stake in NLC India Limited, a public sector company engaged in lignite mining and power generation, through an offer for sale (OFS) at a price of Rs 303 per share. The offer for sale opened for non-retail investors today, i.e. on June 9 and has witnessed a strong participation. Non-retail investors bid for over 3.18 lakh shares, representing 127.62 per cent of the 2.49 crore shares reserved for them, at an indicative price of Rs 307.16 a share. Bidding will continue until the close of market hours. The OFS will be available for retail investors on Wednesday.
Govt to sell 3% stake
The Government will sell up to a three per cent stake in NLC India Limited through an offer for sale.
“The Government of India announces the sale of a 2 per cent stake in NLC India Limited (formerly Neyveli Lignite Corporation) through an offer for sale, with a green shoe option to retain 1% in case of higher bids,” Arunish Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM), wrote in a social media post.
Opportunity to buy shares at a discount of 9.73%
NLC India shares will be sold at a price of Rs 303 per equity share, a discount of 9.73 per cent from Monday’s closing price of Rs 335.65 per share on the BSE.
Following this development, the stock opened gap down at Rs 327.05 with a loss of 2.56 per cent. It fell further to touch the low of Rs 320, representing a fall of Rs 15.65 or 4.66 per cent. Last seen, the stock was trading at Rs 328.15 and the market cap of the company stood at Rs 45,502.48 crore.
Share price history
According to BSE data, the share prices of NLC India Limited have yielded a return of 2.33 per cent in the last 1 month, 30.99 per cent in 3 months, 42.01 per cent in 6 months and 42.47 per cent in 1 year. The stock has gained 417 per cent in five years.
Government raised Rs 12,166 crore by selling stake in the current financial year
The government has already raised Rs 12,166 crore by selling minority stakes in public sector companies. This includes Rs 5,542 crore from Coal India, Rs 4,357 crore from NHPC and Rs 2.27 crore from Central Bank of India.
