- The government will exercise a Rs 420 crore greenshoe option in NLC India Ltd's OFS
- The OFS is for 4.15 crore shares, aiming to divest up to 3% of government equity
- Floor price set at Rs 303 per share, a 9.75% discount on the current market price
The government on Tuesday announced that it will exercise its greenshoe option worth Rs 420 crore in the state-run NLC India Ltd. offer for sale. The offer for Sale (OFS) is of 4.15 crore equity shares, aggregating up to Rs 1,260.45 crore, with the government seeking to divest up to 3% of its equity stake in the company.
The floor price for the OFS has been set at Rs 303 per share, a 9.75% discount on the current market price. The offer will open for non-retail investors on June 9, while retail investors will be able to participate on June 10. The floor price marks a discount of about 10% as against the current market price.
ALSO READ: NLC India OFS: Govt To Sell Up To 3% Stake, Sets Floor Price At Rs 303/Share
The issue also has a greenshoe option consisting of 2.77 equity shares aggregating up to Rs 420.15 crore. The non-retail portion makes up of 90% of the total issue size, while the retail portion makes up of the remaining 10%. The sale comprises a base offer of 2% of the paid-up equity capital, with an additional 1% stake available under a green shoe option in the event of strong investor demand.
Key details of the OFS:
Total Issue Size (excluding employee reservation): 4,15,99,098 equity shares (Rs 1,260.45 crore) – 3% of outstanding capital
- Base Issue Size: 2,77,32,732 equity shares (Rs 840.30 crore) – 2% of outstanding capital
- Green Shoe: 1,38,66,366 equity shares (Rs 420.15 crore) – 1% of outstanding capital
- Employee Reservation: 25,000 equity shares (Rs 0.75 crore) – 0.002% of outstanding capital
Non-Retail Portion (QIB + HNI; excluding employee reservation): 90% of Offer Size
- Opens for bidding on June 9, 2026
- Base Issue Size: 2,49,59,458 equity shares (INR 756.27 crore)
- Green Shoe: 1,24,79,729 equity shares (INR 378.14 crore)
Retail Portion (excluding employee reservation): 10% of Offer Size
- Opens for bidding on June 10, 2026
- Base Issue Size: 27,73,274 equity shares (INR 84.03 crore)
- Green Shoe: 13,86,637 equity shares (INR 42.02 crore)
The company has maintained steady growth across its mining and power businesses, supported by capacity expansion initiatives and a diversified energy portfolio.
NLC India, formerly known as Neyveli Lignite Corporation, has delivered robust operational and financial performance in recent years.
The PSU has also rewarded shareholders through regular dividend payouts and consistent returns, reinforcing its position as a key player in India's energy sector.
Market participants are expected to closely track investor response to the OFS, given the company's strong fundamentals and strategic importance in the country's power and mining landscape.
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