Synopsis
The government is set to launch an offer for sale (OFS) to divest up to 3% of its stake in NLC India, valued at around Rs 1,263 crore. OFS opens its doors to non-retail investors on June 9, with a floor price of Rs 303 per share, a discount from its previous closing price.
YEARSThe offer for sale opens for non-retail investors on June 9, while retail investors, eligible employees and non-retail investors carrying forward unallocated offers can participate on June 10.The actions of NLC India fell 3% to Rs 327 on the BSE on Tuesday as the government is set to launch an offer for sale (OFS) to divest up to 3% stake worth Rs 1,263 crore in the Navratna PSU Company Today.
The OFS, which opens to non-retail investors on Tuesday, is priced at Rs 303 apiece, a discount of almost 10% from the stock’s previous closing price of Rs 335.75 apiece. SNG.
NLC India on Monday said the government intends to sell 2 per cent of the company’s total paid-up share capital, or 2.78 crore shares, under the basic offer. The government also retains an oversubscription option to sell an additional 1% stake or 1.39 crore shares, taking the total size of the potential offering to 4.17 crore shares or 3% equity. At the floor price of Rs 303 per share, it would be worth around Rs 1,263.51 crore.
The offer for sale opens for non-retail investors on June 9, while retail investors, eligible employees and non-retail investors carrying forward unallocated offers can participate on June 10. The sale of shares will be done through a separate window mechanism on the BSE and NSE stock exchanges, in accordance with the OFS framework of market regulator SEBI.
Read also | Government to sell 3% stake in NLC India through OFS, sets floor price at Rs 303
NLC India, formerly known as Neyveli Lignite Corporation, is among India’s leading mining and power generation companies. It operates lignite mines and thermal power plants while expanding its renewable energy portfolio. The company has become one of the beneficiaries of India’s growing demand for electricity and the government’s focus on energy security. In recent years, the company has diversified beyond lignite mining into solar and other renewable energy projects as part of its long-term growth strategy.
Shareholder breakdown of NLC IndiaThe central government held a 72.20% stake in NLC India, according to the company’s shareholding distribution data as on March 31, 2026. 22 mutual funds held around 9.5% stake in NLC India, while Life Insurance Company of India (LIC) and SBI Life Insurance each held around 2% of the capital.
NLC India’s OFS comes as the government steps up its disinvestment efforts. Recently, the government divested itself of part of its stake in Coal India, CNPS and other PSU companies.
NLC India share priceNLC India shares fell around 4% in a week but gained 2.5% in a month. The stock is up over 31% overall in 2026 so far. Over the longer term, PSU stocks have generated returns of 39% over one year, 237% over three years and 431% over five years. The company currently has a market capitalization of nearly Rs 46,646 crore.
NLC India has maintained a track record of returning cash to shareholders in the form of regular dividends. The company has declared 43 dividends since August 2000 and currently has a dividend yield of 1.52%, according to data from Trendlyne.
Read also | Promoter entities sell shares worth Rs 153 crore under Motilal Oswal block deal; HDFC Life takes over stake
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