NLC India Ltd. stock declined 5% on Tuesday, June 9, falling as much as 4.6% to its day's low of ₹320 on BSE following the government's announcement of an Offer for Sale (OFS). The stock has lost 7% in the last week and 2% in the last month, though it has gained 35% in the past three months and over 33% in the last year. The decline reflects investor reaction to the government's decision to sell up to a 3% stake in the Navratna PSU, formerly known as Neyveli Lignite Corporation.
The OFS consists of a base offer of 2% equity and an additional 1% green shoe option that can be exercised in case of strong investor demand. The floor price has been fixed at ₹303 per share, with the offer opening for non-retail investors on June 9 and retail investors on June 10. As per DIPAM Secretary Arunish Chawla, the government will initially sell around 2.78 crore equity shares, representing a 2% stake in NLC India. In case the green shoe option is exercised, an additional 1.39 crore shares equivalent to another 1% stake will be sold, taking the total number of shares on offer to nearly 4.16 crore and the total stake dilution to 3%.
The NLC India OFS follows successful government stake sales in other companies this financial year. With proceeds from earlier transactions, the government has already raised ₹12,165.85 crore through three stake sales in FY27. Earlier, NHPC's OFS received strong investor response, helping the government raise around ₹4,300 crore against an offer size of 60.27 crore shares, with investors placing bids for 151.33 crore shares according to BSE data. The government also raised ₹5,542 crore through the sale of a 2% stake in Coal India and mobilised another ₹2,266 crore by divesting an 8.08% stake in Central Bank of India.
Ramkrishna Forgings approved the allotment of 3.35 lakh warrants and 3.35 lakh equity shares worth ₹52.7 crore. Meanwhile, PNB Housing Finance approved the allotment of Non-Convertible Debentures (NCDs) worth ₹500 crore. These fundraising activities demonstrate continued corporate expansion and capital requirements across various sectors of the market.
In another recent development, NLC India signed a memorandum of understanding (MoU) with Nuclear Power Corporation of India Ltd (NPCIL) to establish a joint venture for nuclear power projects in India. The partnership is aimed at deepening cooperation in the nuclear energy sector and supporting future power generation capacity. Under the proposed arrangement, NLC India and NPCIL will jointly develop 700 MW indigenous Pressurised Heavy Water Reactor (PHWR)-based nuclear power projects while also exploring other suitable reactor technologies based on mutually agreed terms. The government has appointed ICICI Securities and DAM Capital Advisors as brokers to manage the stake sale, with the OFS being conducted through a separate window on stock exchanges between 9:15 am and 3:30 pm on respective trading days.
