NLC India OFS oversubscribed 5.22 times on day one; govt exercises full greenshoe option

NEW DELHI: The Centre’s offer for sale (OFS) of up to 3% stake in state-run NLC India Ltd drew strong institutional demand on the first day, getting oversubscribed 5.22 times.

The government had launched the OFS on Monday to sell a 2% stake, with an additional 1% greenshoe option in case of oversubscription, as part of its FY27 disinvestment programme. Following robust demand from non-retail investors, the Centre decided to exercise the full greenshoe, taking the total stake sale to 3%.

"Offer for Sale in NLC India Ltd received enthusiastic response from investors and was oversubscribed 5.22 times on the first day. Allocation will be on a price-priority basis,” Arunish Chawla, secretary, Department of Investment and Public Asset Management (Dipam), said in a post on X, formerly Twitter. “The government has decided to exercise the entire greenshoe option. Retail investors and employees will get an opportunity to bid on June 10.”

The OFS opened for non-retail investors on 9 June and will remain open for retail investors and eligible employees on 10 June. The floor price was fixed at ₹303 per share, at a discount to the previous close of ₹335.65.

However, NLC India shares came under pressure after the OFS launch, falling 2.3% to close at ₹327.85 apiece on the BSE on Tuesday, compared with ₹335.65 at previous close.

At the floor price, the government was initially expected to raise about ₹840 crore through the 2% stake sale. With the full 1% greenshoe exercised, proceeds could rise to roughly ₹1,260 crore.

The Centre currently holds a 72.2% stake in NLC India, equivalent to 1,001.16 million shares. At Tuesday's close, this holding was valued at ₹32,822.92 crore, while the company's total market capitalization stood at ₹45,460.88 crore

The stake sale is part of the government’s efforts to meet its ₹80,000 crore disinvestment and asset monetization target for FY27. 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.

In total, the government has raised ₹18,532.78 crore, or about 23.2% of its FY27 target, through disinvestment and asset monetization, including ₹6,366.93 crore from land monetization.

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.

The mobilization assumes significance as the Centre seeks to bolster revenues amid fiscal pressures. India’s fiscal deficit widened to ₹3.62 trillion in April, nearly double the level a year earlier, reflecting lower revenue receipts and higher expenditure at the start of the fiscal year.

In FY26, the government had raised ₹16,885.56 crore through disinvestment, compared with ₹10,163.02 crore in FY25. It also garnered ₹28,420.49 crore through asset monetization in FY26, according to official data.