NLC India OFS 2026: Govt to Sell Up to 3% Stake

Stock slides as supply overhang hits sentiment

Shares of NLC India fell on June 9, 2026 after the Government of India launched an Offer for Sale (OFS) to divest up to a 3% stake in the state-run mining and power company. On the BSE, the stock was down 3.40% at Rs 324.25, with reports also noting a drop of about 5% during the session. The decline came as markets priced in the near-term supply expected from the two-day sale process. Tracking the OFS, the stock also hit an intraday low of Rs 320 on BSE, reflecting cautious bidding on day one. The issue’s discount to the previous close and the large share size were key factors watched by traders.

What the government is selling in the OFS

The OFS is being carried out by the President of India acting through the Ministry of Coal. The base offer is for 2.77 crore equity shares, representing 2% of NLC India’s paid-up equity capital. In addition, the government has kept an oversubscription option to sell 1.39 crore shares, equivalent to another 1% stake. If the greenshoe option is fully exercised, the total offer rises to 4.16 crore shares, or 3% of the company’s equity capital. Reports also cited the base offer as about 2.78 crore shares, with the greenshoe at 1.39 crore, which still totals 3% overall.

Floor price and discount: key numbers investors tracked

The floor price has been set at Rs 303 per share. This represents a discount of 9.73% to the previous closing price of Rs 335.65 on the BSE. Another reference point cited the discount at 9.92% to the Monday close of Rs 336.40 on the NSE. Discounts of this size typically anchor bids close to the floor on the first day, especially when non-retail investors are the only eligible category. The indicative clearing price was reported at Rs 304.50 per share during day one, suggesting bids clustered near the floor.

Issue size: Rs 840 crore base, up to about Rs 1,260 crore total

At the floor price of Rs 303, the base offer is valued at about Rs 840 crore. Another estimate put the base fundraise at about Rs 842 crore, reflecting rounding differences across sources. Including the oversubscription (greenshoe) option, the total issue size could rise to nearly Rs 1,260 crore, with one report citing Rs 1,260.50 crore. The OFS is part of the government’s broader disinvestment programme for 2026-27. It also comes after stake sales in other PSUs during recent weeks.

OFS schedule: who can bid and when

The OFS opened for non-retail investors on June 9, 2026 and will open for retail investors and eligible employees on June 10, 2026. Only non-retail investors were allowed to place bids on day one. The sale runs during trading hours in a separate window on the stock exchanges, beginning at 9:15 am IST and closing at 3:30 pm IST. Non-retail investors may also carry forward their unallotted bids to the second day and revise them in line with SEBI guidelines. This structure often influences day-one bidding behavior, as institutions may wait to see demand trends before revising price and quantity.

Day-one subscription: early bids and indicative price

According to BSE data, the offer received bids for 58.50 lakh shares as of 12.25 IST on the first day. This translated into 23.44% subscription of the base non-retail portion of 2.49 crore shares. Another update referenced the non-retail portion receiving bids for 11.41% of the quota size by noon, indicating that subscription levels were being closely monitored through the session. The indicative clearing price was reported at Rs 304.50 per share, slightly above the floor price. Investors typically track this number to gauge where bids are concentrating relative to the discount.

Key facts table: structure and timing

Market context: PSU divestment pipeline and past receipts

The NLC India sale is positioned as the fourth OFS in FY27, after Central Bank of India, Coal India Ltd and NHPC India Ltd. The government has raised Rs 12,165.85 crore so far from these three issues in FY27, according to the data cited. Separately, data also showed the government raised Rs 16,885.56 crore from stake sales in FY26, trimming stakes in Mazagon Dock Shipbuilders, Bank of Maharashtra, Indian Overseas Bank, Bharat Heavy Electricals Ltd and Indian Railways Finance Corporation Ltd via OFSes. The NLC India OFS adds to this pipeline as the Centre seeks to bolster disinvestment receipts.

Stock performance and ownership snapshot

Reports said the scrip had gained 41% over the previous six months, and another update put the six-month gain at 35% despite the day’s fall. Such strong recent performance can amplify profit-taking around an OFS announcement, especially when the floor price is set at a meaningful discount to the prior close. The government was reported to hold a 72.20% stake in the Navratna PSU before the OFS. The divestment is designed to widen public shareholding while raising proceeds, but it also increases near-term traded supply.

Business backdrop: expansion targets and capex needs

Analysts have pointed to NLC India’s ambitious capacity expansion plans. A note cited from Axis Securities (dated May 29) said the company aims to increase mining capacity from 50 MTPA to 104 MTPA by 2030. The same commentary projected thermal power capacity rising from 5,960 MW to 10,020 MW and renewable energy capacity increasing from 1,734 MW to 10,110 MW. These additions were estimated to require a capex of Rs 1.01 lakh crore. While the OFS itself is a stake sale by the government, investors often weigh such expansion plans when forming a view on medium-term execution and capital allocation.

What to watch next

The second day of bidding on June 10 will bring retail investors and eligible employees into the OFS, which can shift subscription levels and the final clearing price. Investors will also track whether the greenshoe option is exercised, which depends on demand beyond the base offer. For the market, the key near-term variables remain the final subscription across categories, the discovered price versus the Rs 303 floor, and how the stock trades once the OFS-related supply is absorbed.

Day-one snapshot table (reported intra-day)