Delhi MCD Election Results 2017

Source: media reports

Nalco stake sale attracts bids worth Rs954 crore on day 1

The Nalco share sale attracted bids for over 14.24 crore shares as against 7.73 crore offered to institutional investors, an over-subscription of 1.84 times


The two-day stake sale could fetch about Rs640 crore to the exchequer. Photo: Hemant Mishra/Mint
The two-day stake sale could fetch about Rs640 crore to the exchequer. Photo: Hemant Mishra/Mint

New Delhi: The first PSU disinvestment of the current fiscal took off on a strong note, with the National Aluminium Company Limited (Nalco) share sale on Wednesday attracting bids worth Rs954 crore on strong demand from high net-worth individuals (HNIs) and institutional buyers.

The share sale attracted bids for over 14.24 crore shares as against 7.73 crore offered to institutional investors, an over-subscription of 1.84 times, according to the stock exchange data. Most of the bids came at Rs67.03 per share, slightly higher than the floor price of Rs67. At this price, subscription of over 14.24 crore shares could fetch over Rs954 crore.

“The government will retain full over-subscription under the greenshoe option,” a finance ministry official said. Of its total holding of 74.58% in Nalco, the government is selling 5% or over 9.66 crore shares at a floor price of Rs67. The two-day stake sale could fetch about Rs640 crore to the exchequer. Over 1.93 crore have been reserved for retail investors who will also be offered 5% discount over the issue price.

Retail investors are defined as individuals ones who place bids for sales of total value of not more than Rs2 lakh in aggregate. However, Nalco scrip closed 7.76% lower over previous close of Rs67.75 on the BSE. Nalco is the first disinvestment of the current fiscal, which began on 1 April.

For this fiscal, the government has set a target of Rs46,500 crore through minority stake sale and Rs15,000 crore from strategic disinvestment. In 2016-17, the government had raised over Rs46,247 crore from disinvestment.

More From Livemint