NLC India shares gain 12% as OFS sees good response; issue opens for retail investors

Shares of multibagger PSU NLC India Ltd climbed 12 per cent in Monday's trade after the non-retail portion of the company's ongoing offer for sale (OFS) saw 2.92 times subscription and as the government decided to exercise the green shoe option. The bids for non-retail portion opened on Thursday, March 7.

Retail investors and non-retail investors (who chose to carry forward their un-allotted bids) can bid in the NLC India OFS today. The total issue would 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. Data showed retail portion was subscribed 0.61 per cent at last count.

Following the development, the NLC India stock climbed 12.09 per cent to hit a high of Rs 244.60 on BSE. The floor price for the NLC India OFS was set at Rs 212 apiece, which was 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 initially proposed to sell 5 per cent of the paid-up equity share capital of NLC India Ltd as base offer size, which was equivalent to 69,331,830 equity shares having a face value of Rs 10/- each).

That said, the government 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 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.