Government Sells 2.73% Stake in NLC India
New Delhi: The President of India, acting through the Ministry of Coal, has completed the sale of 3,77,93,155 equity shares of NLC India Limited (BSE: 513683 | NSE: NLCINDIA) through an Offer for Sale on the stock exchanges, reducing the government's promoter holding from 72.20% to 69.47%.
The OFS was executed on June 9, 2026 for non-retail investors and June 10, 2026 for retail investors and employees. The Ministry of Coal filed the required disclosure with BSE and NSE on June 11, 2026 under Regulation 29(2) of SEBI Takeover Regulations.
How the OFS Was Structured
The government originally announced the OFS on June 8, 2026, offering a base size of 2,77,32,732 equity shares representing 2.00% of NLC India's total paid-up equity capital, with an oversubscription option to sell an additional 1,38,66,366 shares representing 1.00% of the company.
The oversubscription option was exercised in full. A total of 3,77,93,155 equity shares representing 2.73% of NLC India's paid-up equity were ultimately sold, with an additional offer of up to 25,000 shares extended to eligible employees. Employees could apply for shares up to Rs 5 lakh in value, with bids considered for allocation up to Rs 2 lakh in the first instance.
The OFS was conducted through the designated stock exchange window in accordance with SEBI's master circular on Offer for Sale through the stock exchange mechanism dated December 30, 2024.
Pre and Post OFS Shareholding
Before the OFS, the government held 1,00,11,56,562 shares representing 72.20% of NLC India's paid-up equity. After the sale of 3,77,93,155 shares, the promoter holding stands at 96,33,63,407 shares representing 69.47%.
NLC India's total equity share capital remains unchanged at 1,38,66,36,609 shares with a face value of Rs 10 per share and a total paid-up capital of Rs 13,86,63,66,090.
What This Means
This disinvestment is part of the government's ongoing programme of reducing its stakes in listed CPSEs while maintaining majority control. At 69.47%, the government remains firmly in command of NLC India with a comfortable buffer above the mandatory 51% threshold for government companies.
For NLC India, increased public float improves trading liquidity and broadens the institutional investor base. NLC India is a Navratna CPSE under the Ministry of Coal with operations spanning lignite mining in Tamil Nadu, thermal power generation, and a rapidly growing renewable energy portfolio. The company recently saw PESB recommend a new Director (Power) and has been actively expanding its capacity across both conventional and clean energy segments.
The Ministry of Coal's use of the OFS route — the fastest and most transparent mechanism for government stake sales in listed companies — signals continued intent to periodically monetise holdings across its CPSE portfolio without ceding operational control.
Key Details
Shares sold were 3,77,93,155 equity shares representing 2.73% of paid-up capital. Government promoter holding before the OFS was 72.20% and after the OFS stands at 69.47%. The OFS dates were June 9 and 10, 2026. Total equity share capital of NLC India is 1,38,66,36,609 shares of Rs 10 face value each.