The Government of India is likely to raise ₹ 750 crores through disinvestment of 5% of paid-up equity shares of NLC India Limited (NLCIL) through Offer for Sale (OFS) mechanism.

Government approved disinvestment of 3% equity shares of NLCIL as base offer, with an option to retain oversubscription up-to additional 2% equity shares. Trading for Non-Retail portion took place on 25th October, 2017 at a floor price of ₹ 94. Against the offer size of 3.67 crore, bids were received for 11.63 crore shares, resulting in over subscription by 3.19 times. 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 will take place on 26th October, 2017. Retail investors are offered discount of 3.5% over cut-off price for non-retail category.

Post-disinvestment, the Government of India’s shareholding in NLC will come down to 84.32%.

Disinvestment via Offer for Sale prompts government to reduce stake after non-retail oversubscription increases offer size. The Government conducted a disinvestment via Offer for Sale with a base share sale and an explicit oversubscription option; substantial non-retail oversubscription led to expansion of the offer size by exercising that option. The OFS used floor-price bidding for non-retail bids, preserved a separate retail tranche with a pricing discount relative to the non-retail cut-off, and resulted in a reduction of the Government's post-disinvestment equity stake.