NLC India Shares Plunge as Centre Announces Offer for Sale of Up to 3% Stake
Shares of state-run company NLC India traded sharply lower on Tuesday following the announcement by the Government of India regarding a sale of its equity stake. The news contributed significantly to investor concern, driving down the stock price despite assurances from government officials about the company's fundamentals.NLC India shares were trading at Rs 324.40 on the NSE during the day, reflecting a decline of 3.38 percent. Earlier in the session, the volatility intensified as the stock fell by as much as 4.47 percent, driven by the disinvestment mandate.
Details of NLC India Offer for Sale (OFS)
The Government of India officially announced an OFS aimed at divesting a portion of its stake in NLC India. The offering structure includes a base offer representing 2 percent equity and a potential additional 1 percent Green Shoe Option. This option may be exercised if investor demand proves strong during the sale process.DIPAM Secretary Arunish Chawla confirmed the transaction details, noting that the floor price for the share sale has been set at Rs 303 per share. The government intends to initially sell approximately 2.78 crore shares, corresponding to the 2 percent base offer in NLC India's paid-up equity capital.
Timeline and Offer Structure
The OFS timeline is scheduled as follows: Non-retail investors are set to receive the opportunity starting June 9. Retail investors, however, will be able to submit their bids beginning on June 10. This phased approach caters to various investor segments within the market.Secretary Chawla used this announcement platform to highlight NLC India's operational and financial stability. He stated that the company maintains a long-term investment opportunity due to its consistent returns and reliable dividend payouts, reassuring investors of its core strength.
Context in Centre's Divestment Roadmap
The disinvestment process for NLC India is part of a broader strategic programme by the Central government. The announcement follows recent stake sales initiated by the government in other PSU entities. This signals an ongoing roadmap across several state-owned companies.In addition to NLC India, the government has also announced stakeholder divestments in Coal India and NHPC. Stake sale details for these companies include a potential 6 percent equity disinvestment from NHPC, with that offer set for June 2026. A stake sale in Coal India was announced in late May 2026 as part of this continuous roadmap.
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