NLC India OFS Sees Over-Subscription, Institutional Buyers Invest Rs 4,158 cr

The Indian government’s Offer for Sale (OFS) of NLC India shares has seen a massive response from institutional buyers, with bids worth Rs 4,158 crore pouring in on Tuesday.

NLC India OFS Sees Over-Subscription, Institutional Buyers Put in Rs 4,158 cr Bids

The non-retail investors bid for over 13.03 crore shares at an indicative price of Rs 319.06 a share, surpassing the base offer size of 2.49 crore shares for them.

Key Details of the OFS

The government is selling about 4.16 crore shares, or up to 3 per cent stake in NLC India, at a floor price of Rs 303/share through a two-day OFS.

Market Impact and Details

• The issue will open for retail investors on Wednesday.
• The stake sale comprises a base offer size of 2 per cent, and an additional 1 per cent greenshoe option in case of over-subscription.
• If fully subscribed, the stake sale would fetch about Rs 1,200 crore to the exchequer at the floor price.
• The floor price represents a 9.73 per cent discount over NLC India’s closing price of Rs 335.65 a share on the BSE on Monday.

Key Takeaways

• The government is selling a 3 per cent stake in NLC India through the OFS.
• The issue has seen over-subscription from institutional buyers, with bids worth Rs 4,158 crore.
• The stake sale is expected to fetch about Rs 1,200 crore to the exchequer at the floor price.

FAQs

What is the floor price of the NLC India OFS?

The floor price of the NLC India OFS is Rs 303/share.

How much stake is the government selling in NLC India?

The government is selling up to 3 per cent stake in NLC India through the OFS.

What is the expected amount to be fetched from the stake sale?

The stake sale is expected to fetch about Rs 1,200 crore to the exchequer at the floor price.

Conclusion

The massive response to the NLC India OFS is a testament to the investor confidence in the company. The government’s stake sale is expected to fetch a significant amount to the exchequer, and the issue is likely to be a success. As the market continues to evolve, it will be interesting to see how the stake sale impacts the company’s stock price and overall market sentiment. Investors are advised to keep a close eye on the developments and make informed decisions accordingly.