Government to sell 7% stake in NLC India, issue to open on March 7
The floor price for the OFS has been set at ₹212 per share. A total of over 69 million shares of the company with a face value of ₹10 each are up for grabs. An additional 27 million shares be available under the greenshoe option.
The government is preparing to launch an Offer for Sale (OFS) in NLC India Ltd (NLC) starting on Thursday, March 7. It will divest a total of 7% equity, inclusive of the 2% available under the greenshoe option.
The floor price for the OFS has been set at ₹212 per share. A total of over 69 million shares of the company with a face value of ₹10 each are up for grabs. An additional 27 million shares will be available under the greenshoe option.
The issue is scheduled to open for institutional investors on Thursday, March 7, with retail investors having the opportunity to participate on Monday, March 11. The market will remain shut on Friday, March 8 on account of Mahashivratri.
The government holds a majority stake of 79.2% in the NLC. With the launch of the OFS tomorrow, the government's ownership in the company is expected to reduce below the 75% threshold, aligning with regulatory requirements and ensuring compliance with Minimum Public Shareholding (MPS) norms.
ICICI Securities Ltd and DAM Capital Advisors Ltd are the brokers on behalf of the government.
CNBC-TV18 had earlier reported, citing sources, that the government was looking to divest its stake in NLC India.
#JustIn | Govt to sell up to 7% stake via OFS, floor price at ₹212/sh, sources to @Sapna_CNBC pic.twitter.com/EAy9VoWObS
— CNBC-TV18 (@CNBCTV18Live) March 6, 2024
(Edited by : Ajay Vaishnav)
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