Nalco stake-sale sails through; govt set to mop up ₹1,200 cr

Our Bureau New Delhi | Updated on January 15, 2018 Published on April 20, 2017


Retail investors put in bids for 3.17 times shares on offer

The Centre’s first stake-sale in a public sector undertaking received robust response with the retail portion of the disinvestment in National Aluminium Company subscribed 3.17 times.

Data from the BSE on Thursday showed that retail investors put in bids for 11.29 crore shares as against 1.93 crore shares (base offer size) and 1.62 crore shares (greenshoe option) reserved for them. The retail investors were also offered a 5 per cent discount on the floor price of ₹67.

On Wednesday, the stake-sale was subscribed 1.84 times by institutional investors for the shares reserved for them. With this, the Nalco stake-sale has been fully subscribed by both institutional and retail investors.

In all, the share-sale received bids worth ₹1,200 crore. The Centre will retain full oversubscription under the greenshoe option that allows sale of more shares than what was originally planned. While the Centre planned to sell 9.66 crore shares as part of the disinvestment in Nalco, it had kept an oversubscription option to sell an additional 9.66 crore shares — 7.73 crore shares to institutional investors and 1.62 crore shares to retail investors.

To shed 9.2% instead of 5%

This means that the Centre is likely to shed 9.2 per cent of its stake in Nalco, although it had initially proposed a 5 per cent stake-sale. Prior to the disinvestment, the Centre held 74.58 per cent stake in the public sector unit.

Shares of Nalco gained 0.52 per cent to end at ₹68.10, on the BSE.

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Published on April 20, 2017
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