Multi-bagger stock: NLC India shares jump in trade; OFS for retail investors opens today

NLC India share price: Shares of NLC India on March 11 gained over 12 per cent in the morning deals, touching the day's high of Rs 244.6 apiece. At around 10:12 a.m., shares of NLC India traded 5.91 per cent, or Rs 12.9, higher at Rs 231.1 apiece. The market capitalisation of the company stood at Rs 32,045.17 crore at around the same time. 

The stock jumped after two major developments. They are as below:

1. MoU signed with the Government of Rajasthan

The power generation company inked a memorandum of understanding (MoU) with the Government of Rajasthan for the formation of a joint venture to set up a 125 MW lignite-based power plant and a 1000 MW solar power plant. 

The MoU between NLC India Limited and the Rajasthan Government entails an investment of more than Rs 7,000 crore.

2. Offer for Sale (OFS) for retail investors opens 

The government of India has proposed to sell a 5 per cent stake through OFS. The window for OFS opened today, March 11, for retail investors. 

For non-retail investors, the window opened on March 7, which was subscribed 2.92 times. "The base offer will comprise the sale of around 6.93 crore equity shares, whereas the greenshoe option will comprise 2.77 crore shares," the company had said. 

The floor price is Rs 212 per share. Through the sale, the government aims to raise Rs 2,000 crore–Rs 2,100 crore. 

"We refer to the Notice dated March 6, 2024, sent by the Seller to the BSE Limited and National Stock Exchange of India Limited (“Stock Exchanges”), whereby the Seller proposed to sell 5 per cent of the paid-up equity share capital of the Company (equivalent to 69,331,830 equity shares) (Base Offer Size) on March 7, 2024 (T day) (for non-Retail Investors only) and on March 11, 2024 (T+1 day) (for Retail Investors and for non-Retail Investors who choose to carry forward their un-allotted bids from T day) with an option to additionally sell up to 27,732,732 equity shares, i.e., 2 per cent of the paid-up equity share capital of the Company (equivalent to 69,331,830 equity shares) (“Base Offer Size”) on March 7, 2024 (“T day”) (for non-Retail Investors only) and on March 11, 2024 (“T+1 Day") (for Retail Investors and for non-Retail Investors who choose to carry forward their un-allotted bids from T day) with an option to additionally sell up to 27,732,732 equity shares, i.e., 2 per cent of the paid up equity share capital of the Company," the filing read. 

Furthermore, it said "the "Oversubscription Option," the equity shares forming part of the base offer size, and the Oversubscription Option will, collectively, hereinafter be referred to as "Offer Shares") through a separate, designated window of the BSE, also the designated stock exchange, and NSE, collectively representing up to 97,064,562 equity shares, which is 7 per cent of the total paid-up equity share capital of the company as of December 31, 2023."

NLC India share price: Past performance

In a year, NLC India shares have given multi-bagger returns of over 195 per cent against Nifty50's rise of over 30 per cent. 

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