NLC India tumbles on reports of likely OFS by month-end

NEW DELHI: Shares of NLC India fell over 2 per cent in early trade after a media report suggested the government may come out with an offer for sale (OFS), selling Rs 2500 crore of company shares this month. However, the stock parred losses and ended the day flat.

Following the report, the stock fell 2 per cent to hit a low of Rs 98 on BSE. It ended the session at Rs 99.95, down 0.05 per cent.

The report cited two sources as saying that the government will sell 15 per cent of its stake in the power producer. As of June 30, the government held 89.32 per cent stake in the company. The move will cut the government stake in the company to below desired 75 per cent. The government in October 2014 notified minimum public holding norms for listed PSUs where it asked PSUs to ensure at least 25 per cent public holding till August 21 of this year.

In July this year, the government extended that deadline by a year to August 2018.