Centre to raise Rs. 2,200cr by offloading NLC India stake
The Indian government is set to sell up to a 7% stake in coal mining company NLC India, via an offer for sale (OFS) this week. The goal is to raise around Rs. 2,200 crore (at current market prices). The government plans to sell 5% of its share in the state-run firm, with the option to sell an extra 2% if demand is high. As of December 2023, the government owns a 79.2% stake in NLC India.
Government's current stake and SEBI regulations
The Centre is taking steps in compliance with the Securities and Exchange Board of India (SEBI) regulations. The rules allow company promoters to hold a maximum of 75% in a listed company. Hence, the Indian government wants to sell shares worth at least Rs. 18,000 crore in the fiscal year ending this month. However, it has only divested stocks worth Rs. 12,600 crore in state-owned companies so far.
A look at the stock prices
Today, on the National Stock Exchange (NSE), NLC India opened at Rs. 226.30 per share, and closed at Rs. 226. This is 0.13% down compared to yesterday. Meanwhile, on the Bombay Stock Exchange (BSE), it opened at Rs. 226.30 per stock, and ended at Rs. 226.70 (up 0.31% more than yesterday).
