NLC India OFS 2026: 3% stake sale at ₹303

Stock reacts as government opens OFS

NLC India shares came under pressure 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. The stock fell 3.40% to ₹324.25, reflecting the immediate impact of a discounted floor price and additional near-term supply. During the session, the scrip also slipped as much as 4.6% on BSE to an intraday low of ₹320 per share before recovering some ground. Another reported datapoint showed the shares down about 3% to ₹327 on BSE.

What the government is selling

The President of India, acting through the Ministry of Coal, is the seller in the transaction. The OFS is structured as a base offer plus an oversubscription option (greenshoe). The base offer consists of 2,77,32,732 equity shares, which represents 2% of NLC India’s paid-up equity share capital. The government also has an option to additionally sell 1,38,66,366 equity shares, representing a further 1% stake. If this greenshoe option is fully exercised, the total offer size rises to 4,15,99,098 equity shares, or 3% of the company’s paid-up equity capital.

Floor price and discount to the market

The floor price for the OFS has been set at ₹303 per equity share. Reports cited the floor price as a 9.73% discount to the previous closing price of ₹335.65 on BSE. Another reference point put the discount at nearly 10% versus ₹335.75 on NSE, while a separate close cited was ₹336.40 on NSE, implying a 9.92% discount. The discounted pricing is a key reason the stock traded lower after the announcement and as the OFS window opened.

Issue size: base offer versus greenshoe

At the floor price of ₹303, the base offer is valued at about ₹840 crore. With the oversubscription option included, the total issue size could rise to around ₹1,260 crore, with one report pegging the potential value at about ₹1,263.51 crore. The transaction was also described as an attempt to mobilise at least ₹1,260 crore from the stake sale.

Timeline: who can bid and when

The OFS opened for non-retail investors on 9 June 2026. Retail investors and eligible employees can participate on 10 June 2026, and the same day also allows non-retail investors to carry forward unallotted bids. The OFS is conducted during trading hours on a separate window of the stock exchanges, commencing at 9:15 am IST and closing at 3:30 pm IST on the bidding day.

Employee reservation details

The offer includes a small portion for eligible employees. Up to 25,000 equity shares may be offered to eligible employees, who may apply for shares up to ₹5 lakh. For allocation, bids up to ₹2 lakh are considered in the first instance, as per the details reported.

Market context: recent run-up and divestment backdrop

The OFS came at a time when NLC India’s shares had gained about 41% over the previous six months, as cited in one report. The divestment is also part of the government’s ongoing stake-sale programme in public sector companies. Another report noted that after Central Bank of India, Coal India Ltd and NHPC India Ltd, the government is looking to raise about ₹1,260.50 crore from NLC India through this OFS.

How the OFS impacted trading on the day

The combination of a discounted floor price and a short bidding window typically draws attention from both institutional and retail participants. On the day of the OFS opening, the stock traded lower, including an intraday decline of 4.6% on BSE before narrowing losses to about 3.62% at ₹323.5 per share at 10:11 AM. Elsewhere, the stock was reported at ₹324.40 on NSE, down 3.38%, after falling as much as 4.47% earlier in the session.

Key facts table

Why this event matters

For investors, the OFS is a price discovery event because the ₹303 floor price sets a clear reference point that is materially below recent market closes. For the government, the transaction is part of a broader divestment programme intended to raise funds through partial stake sales in PSUs. For the stock, the key near-term variable is the additional supply hitting the market over the two-day OFS process, which can weigh on spot prices even as it improves share float.

Conclusion

NLC India returned to focus as the government initiated a two-day OFS to sell up to 3% stake, with a base 2% offer and a 1% greenshoe option at a ₹303 floor price. The stock traded lower amid the discount to recent closes and the opening of the non-retail bidding window on 9 June 2026. The next key date is 10 June 2026, when retail investors, eligible employees, and carry-forward non-retail bids can participate in the OFS.