NLC India Stake Sale: Shares of NLC India fell nearly 3 per cent at open after it was announced that the government was planning to sell up to 7 per cent stake in NLC India via an offer for sale from March 7 to 11.
According to an exchange filing, the government will sell 5 per cent shareholding in NLC India (base offer size), with an option to additionally sell another 2 percent shares via offer-for-sale. 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. Through the sale, the government aims to raise up to Rs 2,000 crore-Rs 2,100 crore
The floor price for the OFS has been set at Rs 212 per share. A total of over 69 million shares of the company with a face value of Rs 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 per cent in the NLC. With the launch of the OFS tomorrow, the government’s ownership in the company is expected to reduce below the 75 per cent 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.
For Q3FY24, NLC India reported a consolidated net profit of Rs 250.4 crore against a loss of Rs 406.7 crore in the previous fiscal. Consolidated revenue from operations for the same period fell 14 per cent to Rs 3,164.4 crore. EBITDA fell 33.5 per cent to Rs 904.7 crore from Rs 1,359.7 crore in the previous fiscal.
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