NLC India Limited formerly Neyveli Lignite Corporation is a ‘Navratna’ profit making GOI enterprise in coming up with an offer for Sale (OFS) on 25 Oct for non retail investor and 26 Oct for retail investor. The OFS is coming on a price of Rs 94 against the closing price of Rs 95.50 on 24 Oct. Retail investor will get 3.5% discount on the floor price. The government is selling 3% stake with another 2% as green shoe option. The 5% sale will fetch government around 800 crore.
Applying for OFS
You can directly apply through OFS using your Demat account. Most of the broker provide applying free of cost. There would be brokerage applicable when you will sell these shares. The share are allotted on the same day once the cut off price is decided. You can trade in OFS received share as soon as next trading day.
The range of the stock for last one year has been 122.9 on 23rd March and 73.15 on 09th Nov 16. So the OFS is not coming at a very high price but somewhere on the average yearly price. Last couple of OFS has seen good subscription from retail investor
Allotment of NLC OFS
The allotment for OFS are generally completed in the same day. So if you have applied for OFS you should know whether you have received any share on the same day and you can start selling OFS shares from your account from 27th Oct.