New Delhi: Institutional investors put in bids worth Rs976 crore on Tuesday for buying government’s part stake in state-owned miner NMDC.

The government had originally planned to sell 1.5% stake in the company, with a green-shoe option to retain an equal quantum. Based on the response from institutional buyers, however, it has decided keep the issue size at 2.52%, according to a finance ministry official.

The sale of 2.52% in NMDC by the government after exercising green-shoe option would fetch about Rs1,200 crore to the exchequer. Financial institutional investors (FIIs) and institutional investors have bid for over 6.36 crore shares—1.68 times of the 3.79 crore shares reserved for them, according to the NSE data.

At the floor price of Rs153.50 apiece fixed by the government, bids for over 6.36 crore shares by institutional buyers would fetch Rs976 crore to the exchequer. The two-day offer for sale (OFS) will open for retail investors on Wednesday.

NMDC stock closed at Rs154.70, down 4.42%, on BSE. The government has already raised over Rs52,500 crore in the current fiscal through stake sale in public sector units (PSUs), including listing of insurance PSUs and exchange traded fund.

It has set an ambitious target of raising Rs72,500 crore for disinvestment in the current fiscal. Of this, Rs46,500 crore is to be raised through minority stake sale in PSUs and Rs15,000 crore from strategic sale. Another Rs11,000 crore is to come from listing of insurance companies.

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