Retail investors over-subscribe NMDC; govt to get Rs1,200 crore
New Delhi: The government’s 2.52% stake sale in state-owned miner NMDC saw robust response from investors with the retail portion getting over-subscribed by 5.40 times on Wednesday.
The two-day offer for sale (OFS) opened for retail subscription on Wednesday. Over 8.58 crore bids came in for 1.59 crore shares reserved for them, representing 5.40 times over- subscription, according to the NSE data.
Institutional investors had on Tuesday put in bids for over 6.36 crore shares—1.68 times of the 3.79 crore shares reserved for them. The sale of 2.52% in NMDC at a floor price of Rs153.50 per share will fetch about Rs1,200 crore to the exchequer. 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, the government decided keep the issue size at 2.52%. Shares of NMDC closed at Rs155.30, up 0.45%, 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.