NLC India, a leading government-promoted company, has unveiled plans for an Offer for Sale (OFS) facilitated by its promoter, the Government of India. The OFS comprises an original size of 6.93 crore shares, equivalent to 5 percent of the company’s equity. Additionally, an option for an additional sale, known as the Green Shoe option, has been included, offering 2.77 crore shares, or 2 percent of equity.
In total, the Offer for Sale presents a substantial 9.7 crore shares, constituting 7 percent of NLC India’s equity. The floor price for this offering has been set at Rs 212 per share, indicating a discount of approximately 6.4 percent compared to the last closing price.
At the floor price, the OFS size amounts to a significant Rs 2056.4 crore. Non-retail investors are slated to participate in the offering on March 7, 2024, while retail investors will have their turn on March 11, 2024. Retail investors are entitled to a reservation of 10 percent, while mutual fund and insurance companies enjoy a reservation of 25 percent.
This strategic move by the Government of India to divest a portion of its stake in NLC India through the Offer for Sale aims to mobilize capital and enhance liquidity in the market. The offering presents an opportunity for investors to acquire shares in a prominent player in the energy sector at an attractive price point, further diversifying their investment portfolios.
