NLC India shares plunges around 4% amid government announces 7% sale of stakes

by Psu Connect
Date: 07-03-24

Shares of the state-owned power sector unit NLC India Ltd. fell nearly around 3.9 percent as soon as the government announced to sale of up to 7% stakes through OFS [Offer for Sale] from 7 to 11 March.

NLC India shares plunges around 4% amid government announces 7% sale of stakes

According to the exchange filling of the company, the government is planning to sell 5% shareholding in NLC India which is a base offer size, along with an option to additionally add another selling option of 2% shares via Offer for Sale [OFS].

The offer-for-sale will be opened for non-retail investors on March 7 and for retail investors on March 11 with a floor price of Rs 212 per share.

The government aims to raise over Rs 2100 crore, through the sale. The floor price for the OFS is set at Rs 212 per share and a total of 69 million shares of the company with a face value of Rs 10 each are set ready to be invested. An additional 27 million shares will be available under the green shoe option.

ICICI Securities Ltd and DAM Capital Advisors Ltd are the listed brokers on behalf of the government. Meanwhile, the government holds a majority stake of 79.2 per cent in the NLC right now.

The sale would impact the government’s ownership in the company to below the 75 percent threshold, aligning with regulatory requirements and ensuring compliance with Minimum Public Shareholding [MPS] norms. The company is a Central Public Sector Unit under the control of the Ministry of Coal.