Govt''s NLC India Share Sale Opens, Strong Non-Retail Bids

New Delhi, Jun 9 (PTI) The government's offer for sale of up to 3 per cent stake in NLC India got off to a smooth start on Tuesday, with strong participation from non-retail investors.

Non-retail investors bid for over 1.09 lakh shares, representing 0.44 per cent of the 2.49 crore shares reserved for them, at an indicative price of Rs 304.92 a share.

Bidding will continue until the close of market hours.

The government is selling about 4.16 crore shares or up to 3 per cent stake in NLC India (Neyveli Lignite Corporation) at a floor price of Rs 303/share.

The stake sale comprises a base offer size of 2 per cent, and an additional 1 per cent green shoe option in case of over-subscription.


If fully subscribed, the stake sale would fetch about Rs 1,200 crore to the exchequer at the floor price.

The floor price represents a 9.73 per cent discount over NLC India's closing price of Rs 335.65 a share on the BSE on Monday.

Shares of NLC India were trading at Rs 322.25, down 3.95 per cent over Monday's close on BSE.

The Offer For Sale (OFS) opens for retail investors on June 10.

The government currently holds 72.20 per cent in NLC India.

So far in the current fiscal, the government has mopped up Rs 12,166 crore by selling minority stakes in PSUs. This include Rs 5,542 crore from Coal India, Rs 4,357 crore from NHPC and Rs 2.266 crore from Central Bank of India.