NLC India shares fall after Offer For Sale opens for non-retail investors

Shares of state-run miner and power producer NLC India Ltd. fell on Tuesday, June 9, after the government announced an offer for sale (OFS) to divest up to 3% of its stake in the company on Monday.

The OFS also comes on the back of the government having sold stakes in Coal India, NHPC and Central Bank of India through a similar route.

What Is The NLC India OFS?

The Centre, acting through the Ministry of Coal, will initially sell a 2% stake, equivalent to 2.77 crore shares, with an option to sell an additional 1% stake, or 1.38 crore shares, through a greenshoe option in case of strong demand as part of the NLC India OFS.

The OFS has been launched at a floor price of ₹303 per share, representing a discount of nearly 10% to Monday's closing price of ₹336.40.

Government

of India announces OFS in NLC India Limited (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 ₹303 per share. OFS opens for non-retail investors on 09 June 2026… Life Insurance Corporation of India

— Secretary, DIPAM (@SecyDIPAM) June 8, 2026

The issue will open for non-retail institutional investors on June 9, while retail investors and eligible employees can bid on June 10. Non-retail investors will also have the option to carry forward un-allotted bids to the retail bidding day.

As part of the offer structure, 10% of the OFS shares have been reserved for retail investors, while eligible employees can bid for up to 25,000 shares and will receive a 5% discount to the cut-off price.

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The government has appointed ICICI Securities and DAM Capital Advisors as the brokers for the share sale.

Who Owns Stake In NLC India?

As per the March quarter shareholding pattern, the government had a 72.2% stake in NLC India.

Among the public shareholders, mutual funds of India had a 9.49% stake in the company led mainly by Nippon Life India AMC (5.65%) and Kotak Mahindra MF (2.6%).

SBI Life Insurance has a 2.17% stake in the company, followed by the Life Insurance Corporation of India (1.83%).

Close to 3 lakh small retail shareholders, or those with an authorized share capital of up to ₹2 lakh, have a 3.68% stake in the company.

The State Industries Promotion Corporation of Tamil Nadu and the Tamil Nadu Industrial Development Corporation are also classified as public shareholders.

Shares of NLC India ended little changed on Monday at ₹336.5. The stock is up 31% so far in 2026.