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Business News/ Market / Stock-market-news/  Government to sell 5% stake in NLC India Ltd at Rs94 per share

New Delhi:The government is likely to raise Rs750 crore by selling a 5% stake through an offer for sale (OFS) in NLC India Ltd (NLCIL), the finance ministry said in a statement on Wednesday.

Formerly Neyveli Lignite Corporation, NLCIL is a Navratna company engaged in mining of lignite and generation of power through lignite-based thermal power plants. The government’s shareholding in NLCIL will come down to 84.32% after the stake sale.

The Department of Investment and Public Asset Management (DIPAM) had approved disinvestment of 3% equity shares of NLCIL as a base offer, with an option to sell an additional 2%. Trading for the non-retail portion took place on 25 October at a floor price of Rs94. Against the offer size of 3.67 crore shares, bids were received for 116.3 trillion shares, resulting in oversubscription by 3.19 times.

The government accordingly decided to sell the additional 2% equity shares. Trading for the retail category will take place on 26 October. Retail investors are offered a discount of 3.5% over the cut-off price for the non-retail category.

Economic affairs secretary Subhash Chandra Garg on Tuesday said the government has so far garnered more than Rs30,000 crore out of the Rs72,500 crore disinvestment target for 2017-18. The government is confident of crossing the target with a number of strategic disinvestments lined up including Air India Ltd.

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Updated: 26 Oct 2017, 12:58 AM IST
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