- On March 6, an official said the government will sell 7% stake in state-run lignite producer NLC India through the offer-for-sale (OFS) route, including a green shoe option of 2%.
- A green shoe option is a provision in the IPO underwriting agreement that gives the underwriter the right to sell more shares than originally planned.
- Even if the government sells 7% stake at the floor price, it will get around ₹2,058 crore.
- The OFS for non-retail investors opened on March 7, while retail investors can place bids on March 11.
- The floor price for the offer has been set at ₹212 per equity share, which is lower than the closing price of the company's shares on BSE on March 6 (Rs 226.7 per share).
- The government sold 69,331,830 equity shares of face value Rs 10 each to non-retail investors only on March 7, which is 5% of the total paid-up equity share capital.
Tags:
Economics
