On Wednesday, the government announced its intention to divest up to a 7% stake in NLC India through an offer for sale (OFS), setting the floor price at Rs 212 per share. This floor price represents a discount of over 6% compared to the current market price of the stock, which closed at Rs 226 on the National Stock Exchange. The OFS will open for institutional investors on Friday, for non-retail investors on Thursday, and for retail investors on March 11, as per a stock exchange filing.
The offer comprises 6,93,31,830 equity shares, constituting a 5% stake, each with a face value of Rs 10. In case of oversubscription, the government plans to offer an additional 2,77,32,732 shares or a 2% stake. As of December, the government held a 79.2% stake in NLC India, although Sebi regulations permit promoters to hold a maximum of 75% stake in a listed company.
In the OFS, at least 25% of the offer is reserved for mutual funds and insurance companies, with another 10% reserved for retail investors. ICICI Securities and DAM Capital Advisors are the appointed brokers for the deal. NLC India’s stock has been among the top performers in the PSU segment, delivering approximately 177% returns over the past year.
For the quarter ending in December, NLC India reported a consolidated net profit of Rs 250.4 crore, a significant improvement from the Rs 407 crore loss reported in the same period the previous year, although revenue declined by 14% to Rs 3,164 crore.
