The Government is likely to raise Rs. 750 crore through disinvestment of 5% of paid-up equity shares of NLC India Limited (NLCIL) through Offer for Sale (OFS) mechanism. The Government approved disinvestment of 3% equity shares of NLCIL as base offer, with an option to retain over subscription up to additional 2% equity shares.
Trading for Non-Retail portion took place on 25 October, 2017 at a floor price of Rs. 94. The Government accordingly decided to retain the over-subscription by revising the total offer size from 3% to 5% of equity shares.
Trading for retail category took place on 26 October, 2017. Retail investors were offered discount of 3.5% over cut-off price for non-retail category. The retail portion was subscribed 2.90 times.
The cut-off price for retail category was at Rs. 95.80 while for non-retail shares was Rs. 94.60. Post-disinvestment, the Government of India’s shareholding in NLC will come down to 84.32%.