NLC India OFS opens: floor price, stake sale and key details

Mumbai | 9 June 2026 

The government unveiled an OFS in NLC India Limited on Monday, offering a 2% base stake with an additional 1% green shoe option, exercisable in the event of oversubscription. The floor price for the issue is fixed at Rs 303 per share. 

NLC India stock declined nearly 4.6% to a day’s low of Rs 320 on BSE on Tuesday, 9 June, following the announcement. 

DIPAM Secretary Arunish Chawla announced the transaction on X, stating: “Government of India announces OFS in NLC India Limited (formerly Neyveli Lignite Corporation) with a base offer of 2% of its equity and an additional 1% Green Shoe Option in case of oversubscription. Floor price fixed at Rs 303 per share.” 

What is the offer structure for the NLC India OFS? 

The base offer covers approximately 2.78 crore equity shares, representing a 2% stake. If the green shoe option is exercised, an additional 1.39 crore shares, equivalent to a further 1% stake, will be sold, taking the total shares on offer to nearly 4.16 crore. NLC India clarified in its exchange filing that if the oversubscription option is exercised, the combined 4,15,99,098 shares forming the base and additional offer will collectively be treated as “Offer Shares.” 

The OFS will be conducted through a separate window on stock exchanges between 9:15 am and 3:30 pm on the respective trading days. 

As of the March quarter, the Government of India held a 72.2% stake in NLC India. 

Who can participate, and on what dates? 

Non-retail investors may bid on 9 June, while retail investors can participate on 10 June. The OFS reserves 10% of offered shares for retail investors. Up to 25,000 shares have been set aside for eligible employees, who will receive a 5% discount on the cut-off price. Employees may submit bids worth up to Rs 5 lakh, though initial allocations will be considered only for bids up to Rs 2 lakh. 

How does the NLC India OFS fit into the government’s FY27 disinvestment programme? 

The NLC India OFS is the fourth divestment transaction of FY27. The government has already raised Rs 12,165.85 crore through three earlier stake sales this fiscal year, comprising Rs 5,542 crore from a 2% stake in Coal India, Rs 4,300 crore from the NHPC OFS, and Rs 2,266 crore from an 8.08% stake sale in Central Bank of India. 

Chawla added: “With strong operational and financial performance, consistent returns and attractive dividends, NLC continues to offer a compelling long-term investment opportunity.” 

In a separate development, NLC India signed a memorandum of understanding with Nuclear Power Corporation of India Limited (NPCIL) on 25 May to establish a joint venture for nuclear power projects in India. Under the proposed arrangement, the two companies will jointly develop 700 MW indigenous Pressurised Heavy Water Reactor (PHWR)-based nuclear power projects, while also exploring other suitable reactor technologies on mutually agreed terms. 

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