The government announced an Offer for Sale (OFS) of up to 3% stake in NLC India Ltd, a Navratna public sector undertaking, on Monday. The OFS includes a green shoe option and sets the floor price at ₹303 per share. This move is part of the ongoing disinvestment program for fiscal year 2027, following successful stake sales in other state-run companies, according to livemint.com.
The OFS was unveiled by the government as a continuation of its strategy to divest stakes in public sector units. The sale allows investors to purchase shares at or above the floor price, with the green shoe option providing flexibility to increase the stake sold if demand is strong. This approach follows recent successful sales in NHPC, Coal India, and Central Bank of India, signaling the government's commitment to its disinvestment targets, livemint.com reported.
The stake sale in NLC India is significant as it reflects the government's ongoing efforts to reduce its holdings in state-run enterprises to raise capital and improve market efficiency. Similar disinvestment exercises in other Navratna PSUs have attracted investor interest, setting benchmarks for pricing and demand. The ₹303 floor price positions the OFS competitively in the market, aligning with the government's broader fiscal and economic objectives outlined for FY27, as detailed by livemint.com.
The OFS for NLC India is scheduled to proceed with key dates to be announced shortly, with the government monitoring market conditions to optimize the sale. The green shoe option allows for an increase in the stake sold beyond 3% if investor appetite is robust, potentially enhancing the total funds raised through this disinvestment tranche, according to livemint.com.