Navratna Central Public Sector Enterprise mining and power generation company under the Ministry of Coal slumps 3 percent in the day’s trade after the Government of India proposes to sell upto 7 percent holding stake in the company through an Offer for Sale at a discount of 6 percent from its previous day’s close price.
With a market capitalization of Rs. 30,582 Crores, the shares of NLC India were trading at Rs. 220.55, down 2.71 percent from its previous day’s close price of Rs. 226.70.
The President of India acting through the Ministry of Coal, Government of India, proposes to sell up to 5 percent holding stake consisting of 6.9 Crore equity shares of the company through an Offer for Sale option at a floor price of Rs. 212 which is at a discount of 6 percent from its previous day’s close price of Rs. 226.
The offer for sale will be open on March 7, 2024 (T day) which is open for bidding for only non-retailers, and on March 11, 2024(T+1 Day) the bidding will be open for retail investors as well as non-retail investors who choose to carry their unallocated bids.
If the proposed offer for sale attains oversubscribed status the promoters have the option to sell an additional 2 percent stake in the company thereby taking the size of the offer for sale to a 7 percent holding stake of the company.
In the proposed OFS the eligible employees of the company have a 5 percent fixed quota of the offer size and are applicable to apply for equity shares of upto Rs. 5,00,000, However any bids by eligible employees will be considered for allocation in the first instance for an amount of up to Rs. 2,00,000 only.
The government of India currently holds a 79.20 percent stake in the company consisting of 109.82 Crore equity shares of the company.
NLC India is a Navratna mining and power generation company under the ministry of coal, it is into the mining of coal and ignite and it generates thermal power through coal and ignite and renewable energy through solar and wind energy.
Its revenue from operations grew by 33.92 percent from Rs. 12,070 Crores in FY22 to Rs. 16,165 Crores in FY23, accompanied by increasing profits of Rs. 1,116 Crores to Rs. 1,426 Crores.
It has reported a return on equity (ROE) of 15.5 percent and a return on capital employed (ROCE) of 13.5 percent, it is making good returns on its equity and capital employed.
Written by: Bharath K.S
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