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The Centre is set to raise ₹750 crore from the 5 per cent disinvestment in NLC India, formerly Neyveli Lignite Corporation, with a robust response from retail investors.
“The retail portion was subscribed 2.9 times,” said the Finance Ministry in a statement on Thursday.
The government had approved disinvestment of 3 per cent equity shares of NLC as base offer, with option to retain over subscription up to an additional two per cent equity shares.
“The government accordingly decided to retain the over-subscription by revising offer size from 3 per cent to 5 per cent of equity shares,” the Ministry said.
As many as 91.7 lakh shares were reserved for retail investors with an oversubscription option of 61.14 lakh shares.
These were also offered at a discount of 3.5 per cent over cut-off price for the non-retail category. The cut-off price for retail category was at ₹95.80, while for non-retail shares was ₹94.60.
The disinvestment took place through a two-day offer for sale.
On Wednesday, the non-retail portion of the issue was subscribed 1.81 times. The floor price was set at ₹94 apiece.
After disinvestment, the Centre’s shareholding in NLC will come down to 84.32 per cent, said the Ministry.
The Centre has already raised ₹19,759.22 crore from disinvestment this fiscal.
It has set a target of ₹72,500 crore from stake sale proceeds, which includes ₹20,500 crore from strategic sales.
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