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The government is going to shed 5 per cent of its share in mining and power public sector undertaking, NLC India limited.
An official statement said: “The government has approved the disinvestment of 3 per cent equity shares of NLCIL as base offer, with option to retain over-subscription up to additional 2 per cent equity shares.”
The government’s shareholding in NLC will come down to 84.32 per cent after the divestment.
Against the offer size of 3.67 crore, bids were received for 11.63 crore shares, resulting in over subscription of non retail portion by 3.19 times. The Centre, accordingly, decided to retain the over-subscription by revising the total offer size from 3 to 5 per cent of equity shares.
The government expects to raise ₹750 crore through the disinvestment of 5 per cent of paid-up equity shares of NLC India Limited (NLCIL) via offer-for-sale mechanism.
The trading for non-retail portion took place on Wednesday at a floor price of ₹94 a share. Trading for the retail category will take place on Thursday. Retail investors are offered discount of 3.5 per cent over the cut off price for non-retail post-disinvestment, the statement added.
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