Govt to sell up to 3% stake in NLC India via OFS at ₹303 per share

The Centre on Monday launched an offer for sale (OFS) of a 2% base stake in state-run NLC India Ltd (formerly Neyveli Lignite Corporation), with a 1% greenshoe option in the event of oversubscription, as it seeks to bolster disinvestment receipts in 2026-27.

So far, the government has mobilized ₹12,165.85 crore through stake sales via OFS in three public sector companies—8.08% in Central Bank of India, 2% in Coal India and 6.01% in NHPC Ltd.

The Centre has raised a total of ₹18,532.78 crore, which is about 23.2% of its FY27 target of ₹80,000 crore, as reported by Mint on 5 June, through disinvestment and asset monetization, including ₹6,366.93 crore from land sales.

“The OFS will open for non-retail investors on 9 June and for retail investors on 10 June,” department of investment and public asset management (DIPAM) secretary Arunish Chawla said in a social media post on X. “The floor price has been fixed at ₹303 per share,” he said.

The Centre holds 1,001.16 million shares, representing 72.2% of NLC India, according to the Dipam data. Based on the previous day's closing price of ₹335.65, the government's holding is valued at ₹33,603.82 crore, while the company's total market capitalization stands at ₹46,542.46 crore.

Disinvestment target

Based on its proposed stake sale and the floor price of ₹303 per share, the government could raise about ₹840 crore through the base offer of 2%. If the additional 1% greenshoe option is fully exercised, the proceeds could increase to around ₹1,260 crore.

The DIPAM secretary said NLC India continues to offer a compelling long-term investment opportunity backed by strong operational and financial performance, consistent returns and attractive dividends.

NLC India, a Navratna public sector enterprise under the ministry of coal, is engaged in lignite mining and power generation and has been expanding its renewable energy portfolio in recent years.

The resource mobilization assumes significance at a time when India's fiscal deficit surged to ₹3.62 trillion in April, nearly doubling from a year ago, driven by a sharp decline in revenue receipts and a jump in expenditure during the first month of the ongoing fiscal year.

The government had garnered ₹16,885.56 crore from disinvestment in FY26, compared with ₹10,163.02 crore in the previous fiscal year, DIPAM data showed. Besides disinvestment receipts, ₹28,420.49 crore was raised through asset monetization in FY26. There were no such asset monetization receipts before FY26.