Shares of the company today closed at Rs 34.85 per share on the BSE.
"The company is offering 19.62 lakh shares at 5% discount to the rate at which government has disinvested its stake in the company," NFL Chairman and Managing Director Neeru Abrol told PTI.
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In June last year, the government had approved disinvestment of 7.64% stake sale of NFL out of Government of India shareholding of 97.64%, through the offer for sale (OFS) route, in the domestic market.
The Cabinet had also decided on allotting shares "to the eligible and willing employees of NFL at a discount of 5 per cent to the issue/ discovered (lowered cut off) price up to maximum 0.4 of the paid up equity capital subsequent to completion of the transaction under OFS", according to a BSE filing.
Abrol said the offer is likely to get fully subscribed as market price of shares are higher compared to the offer price.
Government had fetched Rs 101 crore from the sale of 3.74 crore shares in NFL, at the rate of Rs 27 per share.
The eligible employee mean a permanent and full-time employee of the company and working in India. The list of the eligible employees will also be provided by the company, the filing added.
It also added that all those employees, who were on rolls of NFL as on July 31 last year can take part in this offer, eligible employee can apply for minimum 10 shares and maximum equity shares 7,797.
The offer closes on May 31 and there are about more than 4,000 eligible employees who can participate.