Nature of the Event

Notice of proposed Offer for Sale (OFS) of equity shares of NLC India Limited by its promoter, the President of India acting through the Ministry of Coal, Government of India, through the stock exchange mechanism.

Key Quantitative Figures

  • Base Offer Size: 2,77,32,732 Equity Shares (2.00% of paid-up equity)
  • Face Value: ₹10 per share
  • Oversubscription Option: Up to 1,38,66,366 Equity Shares (1.00% of paid-up equity)
  • Total Potential Offer: 4,15,99,098 Equity Shares (3.00% of paid-up equity)
  • Employee Offer: Up to 25,000 Equity Shares
  • Floor Price: ₹303 per equity share
  • Retail Discount: Nil
  • Retail Investment Limit: ₹200,000
  • Employee Investment Limit: ₹500,000 (with initial allocation priority up to ₹200,000)

Dates of Action

  • T Day (Non-Retail Investors): June 9, 2026 (9:15 AM to 3:30 PM IST)
  • T+1 Day (Retail Investors & Employees): June 10, 2026 (9:15 AM to 3:30 PM IST)
  • Oversubscription Decision Deadline: On or before 5:00 PM on T Day (June 9, 2026)

Parties Involved

  • Seller: President of India, acting through Ministry of Coal, Government of India
  • Seller's Brokers: ICICI Securities Limited (BSE: 103; NSE: 07730) and DAM Capital Advisors Limited (BSE: 623; NSE: 12914)
  • Stock Exchanges: BSE Limited and National Stock Exchange of India Limited
  • Designated Stock Exchange: BSE
  • Designated Clearing Corporation: NSE Clearing Limited
  • Authorized Signatory: Pradeep Raj Nayan, Under Secretary, Ministry of Coal

Allocation Methodology

Retail Category (10% reservation):

  • Retail Investor defined as individual bidding for total value not exceeding ₹200,000 across exchanges
  • Allocation at or above Cut-Off Price (lowest price at which shares sold in non-retail category)
  • Proportional allocation in case of oversubscription
  • Unsubscribed retail portion allocated to non-retail investors who carried forward un-allotted bids

Non-Retail Category:

  • Minimum 25% reservation for mutual funds and insurance companies
  • Price priority basis at multiple clearing prices
  • Institutional investors can bid without upfront payment; non-institutional require 100% margin
  • Single bidder allocation limit (except mutual funds/insurance companies): minimum 25% of offer size

Employee Category:

  • Bids only at Cut-Off Price
  • PAN-based validation with 100% margin upfront
  • Allotment priority up to ₹200,000, with excess possible up to ₹500,000 in case of undersubscription

Settlement Process

  • Trade for trade basis
  • Non-retail bids on T Day: Settlement on T+1 Day
  • Retail and employee bids on T+1 Day: Settlement on T+2 Day
  • Institutional investors without upfront payment: Settlement as per secondary market rules (T+1)
  • Direct credit to successful bidders' demat accounts

Important Conditions

  • Seller reserves right to withdraw offer before opening on T Day (10 trading day cooling period)
  • Cancellation permitted if insufficient demand from non-retail investors at or above floor price
  • Modification/cancellation of orders permitted during trading hours with specific conditions per investor category
  • 10% penalty on order value for default in pay-in, credited to Investor Protection Fund
  • Promoter and promoter group members not allowed to participate
  • Offer Shares not registered under US Securities Act of 1933
  • Restricted to qualified institutional buyers in US and offshore transactions under Regulation S

Financial Impact

The transaction represents disinvestment of government stake ranging from 2% to 3% of NLC India's paid-up equity capital, depending on exercise of the oversubscription option.