BUSINESS

Government will use OFS to sell up to 7% of NLC

In order to collect between R2,000 crore and R2,100 crore, the government would sell up to 7% of NLC India, a Navratna corporation under the Ministry of Coal, via an Offer for Sale (OFS).

On March 7, 2024, NLC India Ltd. (NLC) will initiate its OFS, which will sell 7% of the company’s stock, including the 2% that is available under the greenshoe option.

The OFS has a floor price of R212 per share. There will be more than 69 million shares of the corporation for sale, each worth R10. Under the greenshoe option, an extra 27 million shares will be made available. The sale is open to institutional investors as of Thursday, March 7.

Participation by retail investors begins on Monday, March 11. Due to Mahashivratri, the market will be closed on Friday, March 8. “Non-retail investors may access the NLC India Limited Offer for Sale starting tomorrow. Bidding is open to regular investors on Monday, March 11. The 2% greenshoe option will be included in the government’s 7% equity divestment, the Secretary of DIPAM said on social media.

At now, the government owns 79.2% of NLC, making up the majority share. It is anticipated that the OFS would bring the government’s ownership below the 75% mark, in line with legal regulations and guaranteeing adherence to Minimum Public Shareholding (MPS) standards.

Promoters of listed firms are permitted to own up to 75% of the company by SEBI.

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