The floor price is at a discount of more than 6% to the current market price of the stock. On Wednesday, shares of the PSU major ended 0.1% down on the National Stock Exchange at Rs 226.
The OFS will open for subscription to institutional investors on Friday, for non-retail investors on Thursday and for retail investors on March 11, according to a stock exchange filing.
The total number of equity shares under the offer is 6,93,31,830, representing a 5% stake, with a face value of Rs 10 each.
In case of an oversubscription, the government will offer an additional 2,77,32,732 shares or a 2% stake.
The government held a 79.2% stake in NLC India as of December end. However, Sebi regulations allow promoter/promoter entities to hold a maximum of 75% stake in a listed company.In the OFS, a minimum of 25% of the offer has been reserved for mutual funds and insurance companies, while 10% has been reserved for retail investors.ICICI Securities and DAM Capital Advisors are the brokers for the deal.
NLC India stock has been one of the best-performing in the PSU space, giving about 177% returns in the last one year.
For the quarter ended December, NLC India reported a consolidated net profit of Rs 250.4 crore, against a loss of Rs 407 crore a year ago, while revenue fell 14% to Rs 3,164 crore.