NEW DELHI: The government will sell up to 7% of NLC India, a Navratna company under the Ministry of Coal, through an Offer for Sale (OFS) to raise between R2,000 crore and R2,100 crore.
The OFS in NLC India Ltd (NLC) will launch on 7 March 2024, and will divest a total of 7% equity, including the 2% available under the greenshoe option.
The floor price for the OFS is R212 per share. Over 69 million shares of the company, with a face value of R10 each, will be available for purchase. An additional 27 million shares will be available under the greenshoe option. Institutional investors can participate in the offering starting on Thursday, March 7.
Retail investors can participate on Monday, March 11. The market will be closed on Friday, March 8, due to Mahashivratri. “The Offer for Sale in NLC India Limited opens tomorrow for non-retail investors. Retail investors can bid on Monday, March 11th. The government will divest 7% equity, including the 2% greenshoe option,” the Secretary of DIPAM posted on social media.
The government currently holds a majority stake of 79.2% in NLC. The OFS is expected to reduce the government’s ownership below the 75% threshold, aligning with regulatory requirements and ensuring compliance with Minimum Public Shareholding (MPS) norms.
SEBI allows promoters of listed companies to hold a maximum of 75% stake.