NLC India OFS: Government exercises greenshoe option

The government said on Tuesday, June 9 it has decided to exercise the oversubscription option in the ongoing offer for sale (OFS) of Life Insurance Corporation of India, increasing the total stake sale size to 3% of the company’s paid-up equity capital from the initially proposed 2%.

With the oversubscription option, the total offer size has increased to 4.16 crore shares, representing 3% of NLC India’s paid-up equity share capital as of March 31, 2026.

The OFS opened for non-retail investors on June 9 and will be available for retail investors, employees and non-retail investors carrying forward unallocated bids on June 10.

As part of the expanded offer, 41.6 lakh shares, representing 10% of the issue size, will be reserved for retail investors, subject to valid bids.

As per an exchange filling on June 8, it was announced that the government was launching an OFS to sell 2.77 crore shares, representing a 2% stake in the state-run mining and power company. The government would exercise the greenshoe option to sell an additional 1.39 crore shares, equivalent to 1% of the company’s equity capital, it was stated.

The government has also earmarked up to 25,000 shares for eligible employees under a separate employee offer. Eligible employees can apply for shares worth up to ₹5 lakh, although allocation priority will be given to applications up to ₹2 lakh.

Who owns stake in NLC India?

As per the March quarter shareholding pattern, the government had a 72.2% stake in NLC India.

Among the public shareholders, mutual funds of India had a 9.49% stake in the company, led mainly by Nippon Life India AMC (5.65%) and Kotak Mahindra MF (2.6%).

SBI Life Insurance has a 2.17% stake in the company, followed by the Life Insurance Corporation of India (1.83%).

Close to three lakh small retail shareholders, or those with an authorised share capital of up to ₹2 lakh, have a 3.68% stake in the company.

The State Industries Promotion Corporation of Tamil Nadu and the Tamil Nadu Industrial Development Corporation are also classified as public shareholders.

NLC India shares settled 2.13% lower at ₹328.60 on the NSE on June 9, before the announcement regarding the exercise of the greenshoe option.

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