NLC India OFS: Multibagger PSU stock in focus as offer for sale floor price set at 6% discount

Shares of multibagger PSU NLC India Ltd are in focus on Thursday morning, as the two-day offer for sale (OFS) by the promoter will kick off later today. The announcement of divestment by the government came, as the scrip climbed 175 per cent in the last one year. The floor price for the NLC India OFS is set at Rs 212 apiece, which is at a 6.48 per cent discount to Wednesday's closing price of Rs 226.70 on BSE.

The President of India, acting through the Ministry of Coal, Government of India has proposed to sell 5 per cent of the paid-up equity share capital of NLC India Ltd as base offer size, which is equivalent to 69,331,830 equity shares having a face value of Rs 10/- each).The government has kept open an option to additionally sell up to 27,732,732 equity shares i.e. 2 per cent of the paid up equity share capital in the case of an oversubscription.

NLC India said eligible employees can bid for up to Rs 5 lakh worth shares. Any bid by employees will be considered for allocation for an amount of Rs 2 lakh only. At present, The government owned 79.20 per cent stake, or 1,09,82,21,224 shares, in NLC India.

The NLC India OFS will open for non-retail investors today and for retail investors (and non-retail investors who choose to carry forward their un-allotted bids) on March 11.

In case the oversubscription option is not exercised, the equity shares forming part of the base offer size will be referred to as "offer shares" through a separate, designated window of the BSE. The total issue will represent 97,064,562 equity shares, which is 7 per cent of the total paid up equity share capital of the company as on December 31, 2023.

The OFS takes place on a separate window of stock exchanges between 9.15 am and 3.30 pm. Non-retail investors will be allowed to place their bids on Thursday. They ca only revise bids on Monday. While placing their bids, the non-retail investors may indicate their willingness to carry forward their un-allotted bids to T+1 day for allocation to them in the unsubscribed portion of retail category.