Centre Plans Up to 3% Stake Sale in NLC India Through Offer for Sale Route

After the successful sale of stakes in NHPC, Coal India, and Central Bank of India, the government announced on 8 June an Offer for Sale (OFS) in NLC India Ltd, formerly known as Neyveli Lignite Corporation. The offer includes up to 3% of the company's equity, with a green shoe option.

There is a 2% base offer for the company's stock in the OFS, and if there is an oversubscription, there is an additional 1% green shoe option. A minimum price of INR 303 per share has been set. On June 9, non-retail investors will be able to participate in the offer, while retail investors will be able to do so on June 10.

How Centre Plans to Execute Stake Sale?

The government will sell around 2.78 crore shares, or 2% of the paid-up equity capital, in the beginning, as per the offer structure. In the event that there is a high level of investor interest, the Green Shoe Option allows for the further offering of 1.39 crore shares, which is 1% of the total, increasing the disposal to 3%.

Announcing the stake sale, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X, "Government of India announces OFS in NLC India Limited (formerly 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 Rs 303 per share. OFS opens for non-retail investors on 09 June 2026 and for retail investors on 10 June 2026. With strong operational and financial performance, consistent returns and attractive dividends, NLC continues to offer a compelling long-term investment opportunity."

NLC Signing MoU with NPCIL

A memorandum of understanding (MoU) has been signed between NLC India Ltd and Nuclear Power Corporation of India Limited (NPCIL). The two parties have agreed to work together as a joint venture to build nuclear power plants in the nation. On May 25, the business notified stock exchanges of its plans to form an alliance. The goal of the partnership will be bolstering collaboration in the nuclear energy industry and providing funding for future power-generating initiatives.

Both businesses have committed to building nuclear power plants using 700 MW indigenous pressurised heavy-water reactors (PHWRs) as part of the agreement. On the other hand, companies will look into other power reactor technologies that are mutually agreeable. The government has completed a number of divestiture transactions this fiscal year, including the sale of its share in NLC India. There was a time when the government was able to raise almost INR 4,300 crore via stock dilution thanks to the fully subscribed NHPC tender. Bids totalling 151.33 crore shares were received, out of an initial public offering (OFS) size of 60.27 crore shares (BSE data).