- NLC India shares fell over 4% after government launched 3% stake sale today
- Government offers 4.16 crore shares at Rs 303 floor price, 9.73% discount
- Non-retail investors bid for 0.44% of reserved shares at Rs 304.92 per share
NLC India share price cracked over 4% on Tuesday, June 9, after the government's offer for sale of up to 3% stake in the state-run coal mining company kicked off today, generating strong participation from non-retail investors. The government is selling about 4.16 crore shares or up to 3% stake in NLC India (Neyveli Lignite Corporation) at a floor price of Rs 303 per equity share.
On Tuesday, shares of NLC India opened at Rs 327.20 against a previous close of Rs 335.75 and extended losses by 4.5% to hit an intraday low of Rs 320 so far during the session. NLC India shares were last trading 3.925 lower at Rs 322.60 apiece on the NSE. The benchmark NSE Nifty 50 was 0.6% higher at 23,190.60. The PSU commands a market cap of Rs 44,760.63 crore. The stock has shed over 7% in one week, but has risen 26% on a year-to-date basis and 34% in the last one year.
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NLC India OFS
Non-retail investors bid for over 1.09 lakh shares, representing 0.44% of the 2.49 crore shares reserved for them, at an indicative price of Rs 304.92 a share. Bidding will continue until the close of market hours. The stake sale comprises a base offer size of 2 per cent, and an additional 1% green shoe option in case of over-subscription.
If fully subscribed, the stake sale would fetch about Rs 1,200 crore to the exchequer at the floor price. The floor price represents a 9.73% discount over NLC India's closing price of Rs 335.65 a share on the BSE on Monday. Shares of NLC India were trading at Rs 322.25, down 3.95 per cent over Monday's close on BSE. The OFS opens for retail investors on June 10.
The government currently holds 72.20% in NLC India. So far in the current fiscal, the government has mopped up Rs 12,166 crore by selling minority stakes in PSUs. This include Rs 5,542 crore from Coal India, Rs 4,357 crore from NHPC and Rs 2.266 crore from Central Bank of India.
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