NLC India shares fall 3% as OFS worth up to Rs 1,263 crore opens

The OFS, which opens for non-retail investors on Tuesday, is priced at Rs 303 apiece, marking a discount of nearly 10% to the stock’s previous closing price of Rs 335.75 apiece on NSE.

NLC India announced on Monday that the government aims to sell 2% of the company’s total paid-up equity capital, or 2.78 crore shares, as part of the base offer. The government also retains an oversubscription option to sell an additional 1% stake or 1.39 crore shares, taking the total potential offer size to 4.17 crore shares or 3% equity. At the floor price of Rs 303 per share, this would be worth around Rs 1,263.51 crore.

The offer for sale opens for non-retail investors on June 9, while retail investors, eligible employees and non-retail investors carrying forward unallotted bids can participate on June 10. The share sale will be conducted through a separate window mechanism on stock exchanges BSE and NSE, in line with market regulator SEBI’s OFS framework.

Also Read | Government to sell 3% stake in NLC India through OFS, sets floor price at Rs 303

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NLC India, formerly known as Neyveli Lignite Corporation, is among India’s leading mining and power generation companies. It operates lignite mines and thermal power stations while also expanding its renewable energy portfolio. The company has emerged as a beneficiary of India’s rising power demand and the government’s focus on energy security. In recent years, the company has diversified beyond lignite mining into solar and other renewable energy projects as part of its long-term growth strategy.

The Central government owned a 72.20% stake in NLC India, according to data on the company’s shareholding pattern as on March 31, 2026. 22 mutual funds held around 9.5% stake in NLC India, while Life Insurance Corporation of India (LIC) and SBI Life Insurance each held around 2% stake.

NLC India’s OFS comes as the government ramps up its disinvestment efforts. Recently, the government offloaded some of its stake in Coal India, NHPC and other PSU companies.

NLC India share price

NLC India shares have fallen around 4% in one week but gained 2.5% in one month. The stock is overall up over 31% in 2026 so far. In the longer term, the shares of the PSU have delivered 39% returns over one year, 237% over three years and 431% over five years. The company currently has a market capitalisation of nearly Rs 46,646 crore.

NLC India has maintained a track record of returning cash to shareholders through regular dividends. The company has declared 43 dividends since August 2000, and currently has a dividend yield of 1.52%, according to data on Trendlyne.

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